A large build-up of speculative short positions in the yen raises the risk of a sharp short squeeze if the BOJ signals more aggressive tightening, potentially unwinding yen-funded carry trades that support risk assets.
The Bank of Japan's rate decision on Tuesday is a critical event for Bitcoin traders. Speculative short positions in the yen have reached a nine-year high, creating a risk of a sharp short squeeze. Aggressive monetary tightening by the BOJ could unwind yen-funded carry trades,…
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