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The yen slid to 160 per dollar Tuesday while Japanese government bond yields pushed to their highest in three decades, with US Treasury Secretary Bessent signaling Tokyo may step in to support the currency. A weak yen paired with rising JGB yields is the classic setup for carry-trade unwind risk: higher domestic yields pull Japanese capital home and compress the funding spread that has financed leveraged positions in US tech and high-beta crypto, making BTC and ETH vulnerable to a repeat of the August 2024 deleveraging. Watch for confirmed MOF intervention above 160 and any BOJ shift in rate-hike guidance; without a policy move, USD/JPY drift higher keeps upward pressure on global term premia and long-end UST yields.
As a Forex signal, watch whether it changes price action, volatility, or flows around JPY=X, BTC, IXIC.
Original Source: CNBC Markets
This page is market information analysis, not investment advice.
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