- Japanese Yen Rises Again
- Strengthening of Japanese Yen May Shake Markets Again
- Forecasts and Expectations
The Japanese yen is once again strengthening against the US dollar. This situation resembles the market movement at the beginning of August when global stock indices and the largest cryptocurrency Bitcoin (BTC) fell.
Japanese Yen Rises Again
Since last Thursday, the Japanese yen has strengthened by 2.4% against the US dollar, ending its recent decline. This indicates that the 'risk-averse' currency is being preferred again. The Japanese yen has also strengthened by over 1% against the Australian dollar and is in good shape against the Euro and British Pound.
Strengthening of Japanese Yen May Shake Markets Again
The strength of the Japanese yen causes problems as stops are triggered and risky positions are unwound. Famous trader Simon Ree warned on X, “This situation is shaking global risky assets.” Goldman Sachs‘ head of crypto-related trading desk Andrei Kazantsev recently commented on how Bitcoin (BTC) and Ethereum (ETH) were caught in the unwinding of the Japanese yen carry trade and the global VAR shock on August 5.
Forecasts and Expectations
Currently, the Japanese yen is strengthening, and therefore cryptocurrency investors should be cautious. The Japanese yen has risen from 161 to 141.68 against the US dollar in three weeks. ING stated on August 16, “A 20-point drop in USD/JPY will affect future direction and behavior expectations.” Some say that the carry trade might restart in the coming weeks. The reason given is the US economy and the Federal Open Market Committee’s (FOMC) next meeting scheduled for mid-September.
The situation with the strengthening of the Japanese yen shows how fragile global markets can be and how important central bank decisions are for investors. Keep an eye on further developments and be prepared for possible changes in the market.
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