Stephen Jen Quoted in Bloomberg: “Stephen Jen Sees Yen Strengthening, Putting Carry Trades at Risk”

Bloomberg, May 26, 2026

In a recent article for Bloomberg, Anya Andrianova examines Stephen Jen’s latest views on the Japanese yen, USDJPY and the risks facing yen-funded carry trades.

The article draws on the latest research note by Stephen Jen and Joana Freire, “The Current Level of USDJPY: Stable but Unsustainable,” which argues that the yen may be poised to strengthen against the US dollar after a period of weakness.

Bloomberg highlights Stephen and Joana’s view that yen-funded carry trades could become vulnerable if Japan’s growth outlook improves, domestic interest rates rise and capital begins to return to Japan. The article also references their comparison with October 1998, when a sharp unwind in carry trades coincided with a rapid move higher in the yen.

As Stephen Jen and Joana Freire wrote:

“Carry trades look stable until they are not.”

The piece places this analysis in the context of recent yen intervention, oil-price pressures and the current level of USDJPY near 160. The broader issue, as framed in the research, is whether the yen’s recent weakness reflects a sustainable equilibrium or a market configuration that could change quickly if policy, rates or capital flows shift.

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