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Goldman Sachs says the currency carry trade — the leveraged strategy blamed for the August 2024 yen-unwind crash — has rebuilt to its largest size in years. A crowded carry position funded in low-yield currencies like the yen raises tail risk for risk assets, since any sharp JPY appreciation or BOJ rate surprise could force rapid deleveraging across equities and crypto, echoing the 2024 episode when BTC and NASDAQ sold off hard. Watch USD/JPY, BOJ policy signals, and positioning data; a fast yen rally would be the trigger that turns this from a yield trade into a systemic unwind risk.
As a Forex signal, watch whether it changes price action, volatility, or flows around JPY=X, IXIC, BTC.
Original Source: MarketWatch
This page is market information analysis, not investment advice.
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