The Nikkei 225 index is at all-time-highs in August 2025. Highest pay hikes in 30 years, BoJ raised interest rates etc. (sure, both because of inflation, but still).
In my opinion, that happens because the JPYUSD carry trade. This reverses as they raise interest rates (which has been kept artificially low in Japan for decades).
Things seem to be slowly changing in Japan.