Japanese yen surges the most in 6 months – Market speculates that USD/JPY exchange rate intervention is imminent!
According to Bloomberg, the Japanese yen (JPY) just had its largest one-day gain in nearly half a year, pushing USD/JPY down to 155.90 (up 1.6%). The main reason is speculation that Japan – possibly with support from the U.S. – is about to intervene in the foreign exchange market to stop the yen's decline.
What's happening:
The Japanese yen has been "crushed" long-term due to a booming carry trade.
Japan has issued strong warnings to speculators.
NY Fed conducts a "rate check" – calling major banks to ask for USD/JPY rates – this is a preparatory step before real intervention (similar to previous times in 2022, 2024).
Japan has intervened multiple times before but with low effectiveness. This time, if the U.S. participates (like the Plaza Accord in 1985), the USD could weaken significantly (down 50% in 2 years as before).
Why is it important for the global market?
Strong yen → carry trade unwinds → short-term sell-off (like in August 2024).
But long-term: weak USD → increased global liquidity → stocks, gold, crypto benefit greatly (gold is at ATH 5,000+ USD/oz, silver 107-115 USD/oz).
Impact on Bitcoin:
Short-term: Could be highly volatile, even temporarily dump if carry trade unwinds.
Long-term: Abundant liquidity + weak USD is a bullish catalyst – BTC could break out strongly if intervention is confirmed.
Not real intervention yet, but odds are skyrocketing. The market is closely watching USD/JPY and Treasury yields. Do you think the yen will strengthen further or will BTC benefit greatly? Comment below! 🔥📈
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