The market is walking right back into the August 2024 trap.
Think about it: - USD/JPY is back screaming at 161. - Tokyo’s massive ~$73B intervention has completely evaporated. - The multi-trillion dollar Yen carry trade is completely re-leveraged. And today, Asian markets are flashing deep red. In 2024, a sudden Yen spike forced a violent global unwind and a -12% Nikkei crash. The dry tinder is piled up exactly the same way right now. If USD/JPY drops fast, the forced liquidation engine kicks in. History doesn't repeat, but it rhymes. Watch the charts closely.
The market is walking right back into the August 2024 trap.
Think about it:
- USD/JPY is back screaming at 161.
- Tokyo’s massive ~$73B intervention has completely evaporated.
- The multi-trillion dollar Yen carry trade is completely re-leveraged.
And today, Asian markets are flashing deep red.
In 2024, a sudden Yen spike forced a violent global unwind and a -12% Nikkei crash. The dry tinder is piled up exactly the same way right now.
If USD/JPY drops fast, the forced liquidation engine kicks in.
History doesn't repeat, but it rhymes. Watch the charts closely.