Kazuo Ueda of the BOJ stated that if economic conditions align with expectations, interest rates will continue to rise, amid an already accommodative environment.
Ueda's commitment to further rate increases coincides with the ongoing negative inflation-adjusted rates, leading to a destabilization of risk assets and a stronger yen.
As the BOJ plans to tighten monetary policy contrary to the Fed's potential rate cuts, risk assets will face significant pressure, potentially causing traders to unwind yen positions.
The unwinding of yen carry trades has heavily influenced global markets, including the drop in Bitcoin's value from $70,000 to $50,000.
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