Loading ...Since Japans rate hikes appear to have decoupled yen and gold moving in tandem to inverse but too slow for the yen to keep up and can still be bought back.
The Fed may have something to do with the yen spike up. Maybe the Fed is going to cut rates I don’t know but read the last paragraph.
- (BOJ): When the yen hits new lows (e.g., nearing 160 vs. USD), the BOJ may sell U.S. dollars and buy yen in the open market, causing an immediate, sharp, and often unexpected, rise in the yen. These moves are often designed to shock speculative traders.
- “Rate Checks” (Fed & BOJ): Reports that the New York Federal Reserve is conducting “rate checks” (asking banks for yen-dollar quotes) often cause sharp, sudden, short-term surges in the yen, as it acts as a signal of potential,, joint, US-Japan intervention. This was observed in January 2026, when such checks caused a quick spike, even before direct intervention occurred.
- Unwinding of the “Carry Trade” (BOJ/Fed): Investors traditionally borrow cheap yen to invest in high-yield U.S. assets (the carry trade). When the BOJ signals a potential rate hike, or the Fed signals a potential rate cut, this gap closes. This forces a rapid “unwinding” or, a massive buyback of yen, causing a sharp, vertical spike in its value.