The Japanese yen has fallen past 158 against the dollar after traders cut expectations for another Bank of Japan rate hike this month, keeping yen funded carry trades attractive for now while raising the risk of another abrupt reversal that could spill into Bitcoin and the crypto market.
Summary
- The yen fell past 158 per dollar after traders lowered expectations for another BOJ rate hike in October, keeping yen funded carry trades attractive for now.
- A sudden yen rebound remains the main risk, with further BOJ tightening or currency intervention capable of forcing leveraged carry traders to close positions.
- Bitcoin and the borader crypto market were hit during the August 2024…
