Morgan Stanley Warns of Yen Shorts Surge Amid Takaichi Policy Expectations

Thursday, Dec 4, 2025 6:22 am ET1min read

Morgan Stanley warns of a significant buildup in yen short positions due to growing expectations of potential policy shifts under new leadership. Expectations of increased interest rate differentials and carry trade opportunities have driven institutional investors to position for further yen depreciation. Yen weakness can impact global markets and cryptocurrency traders should be aware of changing correlations and altered liquidity conditions.

Morgan Stanley Warns of Yen Shorts Surge Amid Takaichi Policy Expectations

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