The US-Japan yen intervention has traders glued to one trade

The US and Japan jointly intervened to buy yen for the first time since 1998 after the currency hit a 40-year low.
The yen strengthened from above ¥163 to about ¥156.5 per dollar, dragging Japan’s Nikkei down roughly 2.5% as exporters felt the hit.
Markets are watching yen-funded carry trades and whether the Bank of Japan will hike rates — a follow-up would be needed for a durable yen rally.