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Crypto markets watch Bank of Japan meeting amid yen weakness

USD/JPY hovered near 164 and markets mostly priced in a BoJ rate hold, with traders warning a renewed yen carry-trade unwind could pressure digital assets.

Reported · Written up by our desk · Market Structure

Cointelegraph reports that crypto investors are watching the Bank of Japan meeting this week as the yen keeps testing multi-decade lows versus the US dollar, a setup that can affect global funding conditions and spill into digital asset markets.

The outlet cites TradingView data showing USD/JPY approaching 164 on Tuesday, just below new 40-year highs set last week. It notes that yen weakness matters because the yen has long been a key funding currency, and that this creates risk of carry-trade unwinds paired with tighter liquidity if Japanese policy shifts.

Cointelegraph says the BoJ will decide whether to adjust its benchmark rate, which is currently 1.0%, the highest level since 1995. Markets expect no change, with market-implied probabilities of a hold at 98%, while Polymarket put odds of no change at 99% as of Tuesday, after the BoJ last raised rates in June.

The story also points to June messaging from the BoJ that cited inflation trends, including underlying CPI approaching 2%, alongside decades of low rates and accommodative financial conditions, as justification for further policy tightening later if conditions warrant.

Latest closeUSD/JPY 163.75 ▼0.1%

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