On Oct 10, the Japanese yen briefly fell below 153 against the U.S. dollar, marking an eight-month low. Finance Minister Shunichi Kato warned that the government is closely monitoring “one-sided, rapid moves,” signaling readiness to intervene in FX markets. Newly elected LDP leader Sanae Takaichi’s pro-easing stance further weighed on the yen, while Japan’s 10-year bond yield surged to 1.7% — the highest since 2008 — reflecting deep uncertainty over inflation and policy direction.
At the macro level, the weaker yen fuels imported inflation and squeezes consumer demand, placing added pressure on the Bank of Japan to consider rate adjustments. A delayed intervention risks capital flight, while early action could disrupt global bond markets. With the dollar index rising and safe-haven volatility climbing, Asian markets have entered a phase of heightened sensitivity.
Crypto Market: BTC liquidity remains concentrated between 119,000 and 126,000 USD. Dense liquidity at lower levels shows that short-term buying support persists. However, further yen weakness could dampen Asian risk appetite and amplify BTC volatility as market liquidity is repriced.
Bitunix Analyst Insight:
The yen’s sharp decline reflects a convergence of global monetary and political uncertainty, driving a structural revaluation of Asian assets. The key factor in the coming weeks lies not in the exchange rate itself, but in whether capital flows toward “risk reallocation” or “liquidity defense.” This choice will define the true bottom for risk assets.
