🚨 BIG WARNING: BOJ YEN INTERVENTION SEEMS TO HAVE STARTED.
And this is going to decide the fate of global markets.
Today, USD/JPY had a sudden drop from 162.7 to 160.8 in a matter of a few hours.
This drop is without any major news, which indicates some sort of intervention.
Just yesterday, USD/JPY hit its highest level in 40 years, so an intervention is expected.
But why should you care?
The yen serves as a low-cost source of liquidity for the global markets.
The BOJ wants a strong yen, but the global economy wants a cheaper yen.
When the BOJ intervenes to make the yen stronger, it forces investors to sell their assets, which they bought using cheap yen.
So far, the BOJ has failed to stop the yen from devaluing despite several interventions.
But now the situation is getting intense.
The yen becoming the weakest against the USD in 40 years put pressure on inflation, which the BOJ doesn't want.
So, the Bank of Japan could go to the extreme for defending the yen and may break the markets, just like in August 2024.
$USDC
$USDS
And this is going to decide the fate of global markets.
Today, USD/JPY had a sudden drop from 162.7 to 160.8 in a matter of a few hours.
This drop is without any major news, which indicates some sort of intervention.
Just yesterday, USD/JPY hit its highest level in 40 years, so an intervention is expected.
But why should you care?
The yen serves as a low-cost source of liquidity for the global markets.
The BOJ wants a strong yen, but the global economy wants a cheaper yen.
When the BOJ intervenes to make the yen stronger, it forces investors to sell their assets, which they bought using cheap yen.
So far, the BOJ has failed to stop the yen from devaluing despite several interventions.
But now the situation is getting intense.
The yen becoming the weakest against the USD in 40 years put pressure on inflation, which the BOJ doesn't want.
So, the Bank of Japan could go to the extreme for defending the yen and may break the markets, just like in August 2024.
$USDC
$USDS