Alright, so the USDJPY has fallen to 142 in the past few days (JPYHKD ~0.055)
This is basically the lowest since 2023 and has hit the low of the yen-carry unwind fiasco back in Aug2024.
So the big question is – is the weak yen over? Or is this just a temporary setback?
My conclusion is, it should be a temporary setback, and I will lay out the reasons. Will check back at this post in a few months or a year to see how it unfolds.