According to @KobeissiLetter, Japan's 10-year government bond yield has surged to 1.92%, the highest since July 2007. Source: @KobeissiLetter. According to @KobeissiLetter, the 10-year yield has climbed from -0.28% in 2019 to +1.92% as policymakers prepare to raise rates alongside a $135 billion stimulus package. Source: @KobeissiLetter. According to @KobeissiLetter, the move was described as a free-for-all in Japan, signaling heightened macro volatility that cross-asset traders, including crypto participants in BTC and ETH, should monitor during Asia trading hours. Source: @KobeissiLetter.

According to The Kobeissi Letter, the market value of the Bank of Japan’s ETF holdings rose 18.5% year over year over the past six months to a record JPY 83.2 trillion, underscoring strong domestic equity momentum that traders track for positioning in Japan risk assets; Source: The Kobeissi Letter. According to The Kobeissi Letter, unrealized paper gains on the Bank of Japan’s ETF book reached a record JPY 46.0 trillion, explicitly attributed to the ongoing stock market rally, a datapoint equity and macro traders monitor for sentiment and balance-sheet risk context; Source: The Kobeissi Letter. According to The Kobeissi Letter, the surge in market value and gains highlights the scale of the Bank of Japan’s equity exposure through ETFs, a backdrop traders consider when assessing sensitivity of Nikkei 225-linked products and USDJPY to Japanese equity strength; Source: The Kobeissi Letter.

According to @godbole17, USDJPY is under pressure after an unexpected hawkish take by the BOJ. Source: @godbole17 on X, Dec 1, 2025. He argues the current yen strength could be a trap because rates cannot rise much further without risking a fiscal crisis, implying continued yen weakness. Source: @godbole17 on X, Dec 1, 2025. From a technical perspective, he notes today’s USDJPY pullback may be part of a breakout-and-retest setup. Source: @godbole17 on X, Dec 1, 2025.

According to The Kobeissi Letter, citing the Wall Street Journal, President Trump advised Japan’s Prime Minister not to provoke China over Taiwan after speaking with President Xi, indicating a potential de-escalatory signal in the immediate term for cross-strait tensions, per the Wall Street Journal as relayed by The Kobeissi Letter. For crypto traders, geopolitical headline risk matters because BTC and ETH increasingly move in sync with U.S. equities, raising beta to risk-on/risk-off shifts, according to the International Monetary Fund’s 2022 analysis and the Bank for International Settlements’ 2022 research. Safe-haven demand historically benefits the Japanese yen in risk-off episodes, making USDJPY a key barometer to watch alongside crypto, according to Ranaldo and Soderlind, Journal of Finance 2010. Geopolitical risk shocks generally lift global risk premia and volatility across assets, which can spill into digital assets’ short-term returns and volumes, according to the Caldara and Iacoviello Geopolitical Risk Index research.

According to @business, a record of discussions from the Bank of Japan’s latest board meeting signaled the next interest rate increase could come as soon as December, matching many market participants’ expectations, source: Bloomberg. For traders, this flags elevated event risk into December for JPY crosses and Japanese rates, with expectations already leaning toward a potential hike as reported by @business, source: Bloomberg.

According to @KobeissiLetter, Japan’s Nikkei 225 jumped over 4% to a new record high as Sanae Takaichi is set to become Japan’s Prime Minister. Source: @KobeissiLetter. Traders should monitor USDJPY, Nikkei futures, and crypto majors BTC and ETH during Asia hours for potential spillover from this risk-on move. Source: @KobeissiLetter.

According to Omkar Godbole, recent analysis suggests that Bitcoin (BTC) has reached a peak against the Japanese Yen (JPY), while the USDJPY pair is showing bearish momentum. This development indicates a potential pause or reversal in BTC's rally relative to JPY, which could affect cross-currency arbitrage and hedging strategies for crypto traders. The bearish outlook on USDJPY may also signal shifts in risk sentiment or monetary policy that could impact BTC/JPY trading volumes and volatility. Traders should monitor exchange rate trends closely for short-term opportunities and risks, as these forex moves can influence BTC price action in regional markets (Source: Omkar Godbole).

According to Omkar Godbole (@godbole17), the USDJPY downtrend has officially ended as of May 12, 2025 (source: Twitter). This reversal suggests renewed strength in the US dollar against the Japanese yen, which can impact risk sentiment across global markets. For cryptocurrency traders, a stronger USD often leads to increased volatility in Bitcoin and altcoin prices due to shifts in forex-driven capital flows (source: Cointelegraph). Traders should monitor USDJPY movements closely, as forex shifts can directly influence crypto liquidity and trading opportunities.