Mizuho Bank: Yen carry trade unwinding frenzy is nearing its end, expected to hover in the short term between 140 and 145

The chief Asian foreign exchange strategist at Mizuho Bank stated that the unwinding of the yen carry trade is nearing its end, with the yen expected to fluctuate between 140 and 145 in the short term. Following a series of yen appreciations after the Bank of Japan's interest rate hike, investors have been closing out their yen carry trades, leading to a shift in the yen's appreciation trend. The magnitude of the Federal Reserve's interest rate cuts is being reassessed, prompting investors to adjust their positions and causing global asset volatility. Mizuho Bank has revised its target price for the yen, but believes that the Japanese government is unwilling to see significant fluctuations in the yen. Carry trades refer to investors exchanging low-interest currencies for high-interest currencies and investing in high-yield assets. When market conditions change, investors need to close out their positions, leading to a decline in stock prices and an appreciation of the yen