The Japanese Yen has hit a new low against the US dollar in over a year. Against the backdrop of the US dollar's continued strength, this change is becoming a market focal point. When this critical level is broken, volatility in risk assets could further intensify.

From a macro perspective, Yen depreciation is often accompanied by increased carry trade activity, which can transmit pressure to the cryptocurrency market. Historical experience shows that during periods of sharp fluctuations in the USD/JPY exchange rate, the price volatility of mainstream cryptocurrencies like Bitcoin and Ethereum tends to be amplified. This is especially true during periods of liquidity crunch.

For traders, paying attention to such exchange rate signals is crucial. When the Yen weakens further and the US dollar index continues to rise, the market is highly likely to experience a sharp correction. Both spot holdings and derivatives trading need to be prepared for higher volatility.