Is the global economic order shifting? Lately, many economies are questioning the U.S dollar’s dominance (DXY) as inflation erodes other currencies, like the Japanese Yen (JPY) hitting multi-year lows.

From a technical perspective, the JPY/DXY ratio has logged four straight yearly drawdowns, dropping by roughly 35% to 0.06 – A level last seen in the late 1980s, pushing Japan into a renewed economic crisis today.

Against this backdrop, it’s not surprising that China appears to be acting early to limit broader fallout, with its U.S Treasury holdings falling to an 18-year low of $686.6 billion in November 2025.

Source: TradingEconomics

In practical terms, falling Treasury holdings usually point to less dependence on U.S…