NewsMV
The Bank of Japan meets Friday with the yen at 40-year lows against the US dollar (USD/JPY in focus), and analysis is circulating a specific warning: conditions now echo those that preceded the 2024 yen carry-trade unwind that pressured crypto markets.
That unwind moved fast when it moved. The central bank's rate posture on Friday is the next hard data point for traders watching cross-market transmission risk.
The carry-trade setup crypto desks are watching Yen carry trades run on a basic mechanic: borrow cheap in yen, deploy into higher-yielding assets. Crypto has been part of that capital stack in recent cycles.
When the yen strengthens against the dollar, the trade reverses under pressure, and liquid assets in the exit lane absorb the selling.
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