🚨BIG WARNING: THE BIGGEST RISK TO THE GLOBAL MARKET IS BACK.

Just now, USD/JPY has crossed 160 for the first time in 3 weeks.

Let me tell you why this is very bad.

Historically, when USD/JPY has crossed above 160, the BOJ has intervened.

This is because a much weakening yen results in high inflation.

To bring USD/JPY down, the BOJ starts to sell dollars and buy Yen.

But why is a strong yen bad for the global markets?

For decades, Yen has been a cheap source of funding.

But when the yen strengthens, investors suddenly find that they need to pay more on their debt.

This forces them to sell their assets like stocks, crypto, and even foreign bonds.

And here's something that is even worse.

Since the US-Iran war started, Japan's inflation has been on an uptrend.

And when inflation moves up, central banks hike rates.

This is why markets expect another BOJ rate hike in June.

If that happens, it'll be the 5th rate hike from the BOJ since 2024.

The last 4 happened in March 2024, July 2024, January 2025, and December 2025.

And after each one, global equities sold off while the crypto market crashed.

Now if USD/JPY stays above 160 for some time, expect another BOJ intervention, and the markets won't like it.