Reasons for Investors to Dismiss Concerns Over a Potential Yen Carry Trade Unwind
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
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Source: MarketWatch
Rising Bond Yields: Japanese bond yields are increasing, leading to expectations of an interest rate hike by the Bank of Japan for the first time since January.
Yen Carry Trade Concerns: There are fears that rising yields could trigger a significant unwind of the yen carry trade, reminiscent of the market turmoil experienced on August 5, 2024.
Investor Reactions: Discussions around this topic have gained traction on podcasts and social media, highlighting the potential impact on global markets.
Japanese Investors' Behavior: A wave of selling by Japanese investors may occur as they seek to repatriate their funds, further exacerbating market volatility.
Analyst Views on USDJPY
Wall Street analysts forecast USDJPY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for USDJPY is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 158.344
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Current: 158.344
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
