1: The impact of Japanese Yen Arbitrage funds on the market

Recently, there has been a shortage of rice supply and a pump in rice prices in Japan due to multiple factors. The extreme high temperature has led to a decrease in rice production, while the recovery of the tourism industry has sharply increased the demand for rice from domestic and foreign tourists. Earthquakes and two typhoons have triggered hoarding behavior among the public, exacerbating the shortage of rice.

To cope with natural disasters, many people have started hoarding rice. Coupled with the delay in logistics during the traditional 'Bon' holiday in Japan, the supply has been further affected. The Japanese Ministry of Agriculture has promised that with the new rice market in September, the supply situation will gradually improve, and it calls on the public to remain calm and avoid panic buying!
1. This brings additional inflation pressure to the Central Bank of Japan, forcing it to re-evaluate the degree of tightening or loosening of monetary policy. As an important component of the CPI, the pump in food prices will directly affect inflation data.
2. Due to the short-term inflationary impact of the rice disaster, although the Japanese Central Bank may be inclined to maintain low interest rates to support economic recovery, the rising inflationary pressure may force it to consider raising interest rates.
Strengthening the expectation of further interest rate hikes in the yen, the dollar is also about to cut interest rates, which will continue to cause a reversal of yen arbitrage funds (last time the global financial market plummeted was affected by the reversal of arbitrage funds, BTC big dump to $49,000), and perhaps the second collapse is on the way...
The scale of the Japanese Yen Arbitrage funds is approximately $15,000. Last time, about 10% of it went out, which means that nearly 90% of the money is still in various global markets. Of course, there is also the Japanese Yen trap.