Yen reversal could threaten U.S. stocks as rate gap shifts money

Michael Burry warns a reversal in the Japanese yen could weigh on U.S. stocks if capital flows swing back toward Japan as rates diverge, a dynamic echoed by a Wall Street Journal note that the NY Fed contacted counterparties on yen/USD. Morgan Stanley’s Michael Wilson also sees USDJPY fair value around 145, with a potential move toward 140, highlighting yen strength and rate differentials as ongoing tactical risks for equity markets.