Japanese authorities reportedly deployed approximately 8.45 trillion yen, roughly $53 billion, to defend their currency. The carry trade connection to cryptoThe yen carry trade is one of the oldest strategies in finance. When the yen weakens steadily, carry traders win twice: on the interest rate differential and on the currency movement. Traders running leveraged carry positions may be forced to liquidate holdings across equities, bonds, and yes, crypto to cover yen-denominated obligations. If markets interpret that as a signal of sustained US support for yen strength, it could gradually unwind carry trade positions in a more controlled fashion.