The foreign exchange market just witnessed a sharp move as the Japanese yen jumped 1.1% to 154.56 per USD, hitting its highest level since February. Japan's top forex official, Jun Mimura, recently reaffirmed that the country's stance on the yen remains unchanged, even as the currency continues to post an impressive gain against the US dollar.
This strong rise has surpassed the post-intervention peak reached during the joint Tokyo-Washington action, amid growing investor skepticism about the long-term effectiveness of administrative intervention measures. The real driver is expectations that the Bank of Japan (BOJ) will continue raising interest rates, combined with speculation about a potential shift in asset allocation by the Government Pension Investment Fund (GPIF).
According to strategists at JPMorgan, a move above 155 could trigger a wave of short covering, further boosting the yen. This surge is putting heavy pressure on the DXY index and disrupting carry trade positions that have long existed in global financial markets.
For the crypto market, a sudden strengthening of the yen and a wave of deleveraging from carry trade positions often create short-term liquidity shocks. As the USD comes under pressure and the yen appreciates, risk sentiment may cause $BTC va and other risk assets to face temporary downward adjustment before finding a new equilibrium.
#yen #nhat_ban #forex
This strong rise has surpassed the post-intervention peak reached during the joint Tokyo-Washington action, amid growing investor skepticism about the long-term effectiveness of administrative intervention measures. The real driver is expectations that the Bank of Japan (BOJ) will continue raising interest rates, combined with speculation about a potential shift in asset allocation by the Government Pension Investment Fund (GPIF).
According to strategists at JPMorgan, a move above 155 could trigger a wave of short covering, further boosting the yen. This surge is putting heavy pressure on the DXY index and disrupting carry trade positions that have long existed in global financial markets.
For the crypto market, a sudden strengthening of the yen and a wave of deleveraging from carry trade positions often create short-term liquidity shocks. As the USD comes under pressure and the yen appreciates, risk sentiment may cause $BTC va and other risk assets to face temporary downward adjustment before finding a new equilibrium.
#yen #nhat_ban #forex