A large build-up of speculative short positions in the yen raises the risk of a sharp short squeeze if the BOJ signals more aggressive tightening, potentially unwinding yen-funded carry trades that support risk assets.

The Bank of Japan is expected to raise rates to 1% at its June meeting, the highest since 1995. Here's what it means for crypto and risk assets.

Yen short positions hit a nine-year high at -145.8K contracts ahead of the BOJ's expected rate hike to 1.0%, reviving carry trade risks for crypto and