USDJPY carries enormous risk as BoJ continues to defend 25bps
If the BoJ abandons the defense or alters it to a higher level, the market repercussions will be severe as USDJPY and JPY pairs reprice. Of course, it is anybody's guess when this might be. However, given the costs to prop up the yen, and its ineffectiveness, market participants should be very wary of the inherent risks when trading USDJPY and JPY crosses.
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