Remember last Christmas when the carry trade unwound and sent shockwaves through global markets? Well, here we go again. The Bank of Japan is back in focus, and traders are sweating over whether we're about to see another liquidity crunch.

The carry trade—borrowing cheap yen to chase yields elsewhere—has been a favorite play for years. But when the BOJ even hints at tightening, it can trigger brutal unwinding cascades. We saw it happen before: positions liquidated, volatility spiking, risk assets getting hammered.

With year-end positioning already fragile and liquidity thinner than usual, any surprise move from the BOJ could set off another round of chaos. The big question: will they stay patient, or is another Christmas massacre brewing in the markets?

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SchrodingerAirdrop

· 4h ago

The Bank of Japan is getting ready to stir things up again, and the carry traders are probably going to get hit hard this time.

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ShibaOnTheRun

· 12-01 18:31

Another round? These people at the BOJ really know how to play.

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¯\_(ツ)_/¯

· 12-01 18:28

The BOJ is up to something again, the scene from last Christmas is still fresh in my memory... Carry trade is really a ticking time bomb. The end of the year is already fragile, and with liquidity so tight, you never know when it's going to be bloody. If there's another wave this time, I need to see if my position can withstand it.

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CryptoSourGrape

· 12-01 18:25

If only I hadn't been trapped back then, now watching this round of carry trade about to explode, I really want to smash my keyboard... --- If the BOJ pulls another surprise this time, I'll just close my eyes and wait to Cut Loss, after all, I can never dodge it every time. --- Last year's Christmas wave hasn't even recovered, and now it's coming again? This market is really making fun of us. --- Those who borrowed cheap yen to buy the dip are probably trembling now, but it's so enjoyable. --- If I had known the BOJ loved to stir things up like this, I wouldn't have followed the trend to do carry, I regret it so much.

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ProposalDetective

· 12-01 18:25

The Bank of Japan is up to something again, will it really blow up this time? We haven't forgotten the lessons from last year's Christmas carry trade.

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