2 of 4: The Yen

Japan is stuck between a currency crisis and a recession. And its options are running out.

The Yen hit 160 per USD on Monday, which is the exact level that triggered $100B in intervention in 2024. Tokyo's top currency diplomat just used the word "decisive" for the first time, and JPMorgan is expecting in a BOJ rate hike as early as April. One BOJ member used the word "stagflation" at the March meeting. In a sign of true desperation, Japan is reportedly considering shorting oil futures using its $1.4 trillion FX reserve war chest just to buy time until the Middle East stabilizes.