USD/JPY Carry Trade Remains Unwound
The Japanese Yen carry trade remains unwound despite recent market movements.
According to Bitget, the Ministry of Finance was not in the market on Monday and the positioning data showed that the carry trade did not close. The USD/JPY pair traded just above 154.00 after giving up roughly two Yen, its weakest point in six months.
The cost of funding has been repriced, but the position supporting it is still open. Tokyo had the opportunity to unwind the trade on Monday, which was a traditionally preferred day for operations due to American markets being shut for Labor Day.
The move occurred without any official confirmation from either side. Japan buys Yen when its currency is weak, as stated in the joint statement with the US Treasury in September 2025, which aims to prevent disorderly weakness rather than strength.