Bitcoin traders have a reason to watch Tuesday's BOJ rate decision. Yen shorts are at a nine-year high
The article highlights a significant accumulation of speculative short positions against the Japanese yen. This build-up increases the risk of a sharp short squeeze if the Bank of Japan (BOJ) indicates a move towards more aggressive monetary tightening. Such a development could trigger the unwinding of yen-funded carry trades, which currently provide support to risk assets. The potential unwinding poses implications for market stability and risk asset valuations, emphasizing the sensitivity of these trades to BOJ policy signals.