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Coordinated yen interventions unwind carry trades, raising market risk and favoring gold and Bitcoin hedges.

Market News
11 Sep 2026
Seeking Alpha
View Source
Neutral
Coordinated yen interventions unwind carry trades, raising market risk and favoring gold and Bitcoin hedges.

Recent coordinated interventions by the U.S. and Japan have strengthened the yen, reversing over $2 trillion in carry trades and increasing market risk. Unlike the August 2024 sell-off, this move is well-telegraphed with efforts to avoid disorder through larger Treasury buybacks and joint policy actions. If USD/JPY holds above 153 and Treasuries stay stable, a controlled yen squeeze is possible; however, a drop below 152 could trigger risk-off sentiment. Investors are advised to consider gold and Bitcoin as cleaner hedges, while U.S. growth equities remain vulnerable to sudden market disruptions.

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