Japan's yen may rebound as traders unwind speculative bets, and crypto markets should pay attention

Japan's yen may rebound as traders unwind speculative bets, and crypto markets should pay attention

Bank of Japan bought ~$59 billion yen on July 30, driving a 3.3% currency spike against massive short carry-trade positions. Forced deleveraging risks liquidation cascades in crypto, where yen borrowing funds leveraged bets triggering correlated selling.