Japanese Yen at historic lows against the US Dollar with bearish forex chart showing the USD/JPY carry trade crisis in 2026

Japanese Yen at Historic Lows: The Carry Trade, Record Shorts, and What Comes Next

The Japanese Yen has collapsed to levels not seen since 1986. We break down the BOJ policy trap, the record CFTC net short positions, the carry trade mechanics, and what it means for Japan and global markets.