#bojraisesratesto31yearhigh 🇯🇵 BOJ RAISED RATES — SO WHY DID THE YEN FALL? 🤯
Imagine borrowing a currency whose central bank just raised rates…
…and that currency STILL gets weaker. 😂
On Sept. 18, the Bank of Japan raised rates by 25 bps to 1.25%, the highest level in 31 years. The vote was 7–2.
Yet USD/JPY surged as high as 158.05 as traders questioned how aggressive the BOJ will be with future hikes.
👀 HERE’S WHAT MANY PEOPLE MISS:
The market wasn't simply trading the rate hike.
It was trading the expectation gap.
The 25-bp move was widely expected. What mattered was whether BOJ Governor Ueda would provide a clear signal for the pace of future tightening.
Instead, the BOJ kept the timing and pace of future hikes dependent on economic and price developments.
Meanwhile, the U.S.–Japan rate differential remains significant, helping keep the yen carry-trade narrative alive.
💥 AND THEN CAME THE CRYPTO TWIST
Bitcoin rebounded roughly 5.9% toward $81K after the BOJ decision.
So:
BOJ tightening ≠ automatic crypto selloff.
But there’s another risk to watch 👀
If USD/JPY keeps pushing higher, intervention concerns could intensify.
And if the yen suddenly strengthens, crowded carry-trade positions could unwind quickly, potentially creating volatility across global risk assets.
🧠 SQUARE INSIGHT:
Markets don't trade the rate hike alone.
They trade the gap between what was expected and what was actually delivered.
🇯🇵 Do you think the next BOJ move could finally put serious pressure on the yen carry trade?
Market commentary only. Not financial advice. DYOR.
#BOJ #JPY #Yen #USDJPY
CLICK TO BELOW TRADE👇
$BTC $ETH $BNB
Imagine borrowing a currency whose central bank just raised rates…
…and that currency STILL gets weaker. 😂
On Sept. 18, the Bank of Japan raised rates by 25 bps to 1.25%, the highest level in 31 years. The vote was 7–2.
Yet USD/JPY surged as high as 158.05 as traders questioned how aggressive the BOJ will be with future hikes.
👀 HERE’S WHAT MANY PEOPLE MISS:
The market wasn't simply trading the rate hike.
It was trading the expectation gap.
The 25-bp move was widely expected. What mattered was whether BOJ Governor Ueda would provide a clear signal for the pace of future tightening.
Instead, the BOJ kept the timing and pace of future hikes dependent on economic and price developments.
Meanwhile, the U.S.–Japan rate differential remains significant, helping keep the yen carry-trade narrative alive.
💥 AND THEN CAME THE CRYPTO TWIST
Bitcoin rebounded roughly 5.9% toward $81K after the BOJ decision.
So:
BOJ tightening ≠ automatic crypto selloff.
But there’s another risk to watch 👀
If USD/JPY keeps pushing higher, intervention concerns could intensify.
And if the yen suddenly strengthens, crowded carry-trade positions could unwind quickly, potentially creating volatility across global risk assets.
🧠 SQUARE INSIGHT:
Markets don't trade the rate hike alone.
They trade the gap between what was expected and what was actually delivered.
🇯🇵 Do you think the next BOJ move could finally put serious pressure on the yen carry trade?
Market commentary only. Not financial advice. DYOR.
#BOJ #JPY #Yen #USDJPY
CLICK TO BELOW TRADE👇
$BTC $ETH $BNB
