The Fed may intervene in USD to support Yen: Short-term risks, long-term opportunities for Crypto
The market is closely monitoring the possibility of the Federal Reserve (Fed) intervening in the USD/JPY exchange rate — a rare move, previously occurring during major monetary stress periods such as the Plaza Accord in 1985.
Pressure on the Yen is increasing as Japanese bond yields rise and USD/JPY approaches sensitive levels. In historical cycles, when the U.S. coordinated support for the Yen, it often meant a deliberate weakening of the USD — leading to changes in global liquidity and asset pricing.
Two-phase impacts may occur:
Short-term
A rapid strengthening of the Yen could trigger a liquidation of carry trades, causing significant volatility in stocks and Crypto. Bitcoin has previously dropped over 20% in similar shocks.
Medium to long-term:
A weaker USD typically improves liquidity, boosting capital flows into gold, stocks, and risk assets, including Crypto.
Key point: this is not merely a “bullish or bearish” story, but a structural shift in the monetary cycle. Investors should prepare for volatility before a new trend forms. Do you have enough confidence in $BTC at this moment?
