🇯🇵 The yen has hit a minimum since July 2024…



➠ USD/JPY above 161. The risk of currency interventions is returning.

❗️ Today, the Japanese government announced that it is ready to respond to sharp movements in the currency market "at any time."

➠ The dollar strengthened after the Fed meeting, and the gap between US and Japanese interest rates remains large even after the Bank of Japan raised its rate to 1%.

➠ If Japan begins to support the yen, it could strengthen sharply, increasing the likelihood of closing "carry trade" positions – when investors borrow cheap yen to buy risk assets.

➠ USD/JPY above 161 – a potential trigger for moving away from risk if the market expects a new intervention by Japan.
USDJPY-0.16%
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