🏛 Central Banks & Macro risk-off · 0–6 months
A what‑if from the future

What if BOJ intervenes to defend a sliding yen past a line in the sand?

With USDJPY breaching a politically sensitive level, the MOF/BOJ sells dollars to support the yen, jolting the carry trade and lifting cross-asset volatility on the intervention surprise.

12%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 12% · 90% range 0–31% · 40 analogues · measured class de_dollarization 13% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — de_dollarization ≈0.2857/yr → 13% in 6 mo13%
Analyst prior · editorial share 100% of the class24%
Pooled · weight 87%12%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)12%
Published12%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. With USDJPY breaching a politically sensitive level, the MOF/BOJ sells dollars to support the yen, jolting the carry trade and lifting cross-asset volatility on the intervention surprise. The trigger decomposes into signed root‑shocks — US dollar (DXY) ▼ · Volatility (VIX) ▲ · FX carry appetite ▼ · Risk appetite ▼ · Risk-parity deleveraging ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.7%
hist -2.35–+1.58% · other way -7.07% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.6%
hist -0.44–-0.05% · other way +0.63% (n=12)
3Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.5%
hist -3.06–+1.12% · other way -3.1% (n=10)
4USD/JPY USDJPYon Hyperliquid 📈 chartFX▼ -0.4%
hist -0.43–+0.29% · other way +0.37% (n=12)
5Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.4%
model prior · unmeasured
6Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.4%
hist -7.93–+3.43% · other way +2.79% (n=11)
7Tech sector XLK 📈 chartEquity▼ -0.3%
hist -0.3–+0.06% · other way +0.75% (n=12)
8S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.3%
hist -0.39–+0.7% · other way +0.24% (n=12)
9MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.3%
hist -7.15–+2.05% · other way +23.24% (n=12)
10US dollar (DXY) DXYon Hyperliquid 📈 chartFX▼ -0.3%
hist -0.2–-0.09% · other way +1.04% (n=12)
11EUR/USD EURUSDon Hyperliquid 📈 chartFX▲ +0.3%
hist -0.48–+0.4% · other way -1.12% (n=12)
12GBP/USD GBPUSDon Hyperliquid 📈 chartFX▲ +0.2%
hist -0.18–+0.23% · other way -0.64% (n=12)
13Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.2%
hist -0.27–+0.22% · other way +3.44% (n=12)
14Gold XAUon Hyperliquid 📈 chartCommodity▲ +0.2%
hist -0.07–+0.41% · other way +0.63% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -0.3%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Russia cut from SWIFT + central-bank reserves frozen 2022-02 August 24, 2015 ETF flash crash 2015-08 Louvre Accord 1987-02 FDR gold confiscation & revaluation 1933-04 Israel strikes Iran — Operation Rising Lion 2025-06 Nikkei 225 worst single-day crash since 1987 2024-08 VIX third-highest spike on record 2024-08 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 Turkish lira record low on rate cuts 2021-11 Evergrande debt crisis - global selloff 2021-09 Turkey fires central-bank governor Agbal, sparking lira plunge 2021-03 COVID-19 fourth circuit breaker 2020-03 COVID-19 second Level-1 circuit breaker 2020-03 Worst Christmas Eve selloff on record 2018-12 Turkish lira crash 2018-08 February 2018 hot wage print triggers rate scare 2018-02 North Korea 'fire and fury' nuclear scare 2017-08 Pravin Gordhan fired in midnight cabinet reshuffle 2017-03 Mexican peso crash on Trump 2016 win 2016-11 Russian ruble 'Black Tuesday' 2014-12 Russia annexation crisis: Moscow market plunge 2014-03 SEC approves Limit Up-Limit Down plan and revised market-wide circuit breakers 2012-05 SNB imposes EUR/CHF 1.20 floor 2011-09 US-downgrade Black Monday equity rout and VIX spike to 48 2011-08 Egyptian revolution / Mubarak uprising 2011-01 VIX record intraday high of 89.53 2008-10 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 Turkey lets the lira float 2001-02 Yen carry-trade unwind 1998-10 Russia GKO default and ruble moratorium 1998-08 Hong Kong defends the peg with sky-high HIBOR 1997-10 Philippines peso float 1997-07 Thai baht float 1997-07 Mexico $50bn international rescue package 1995-01 Mexican peso devaluation / Tequila Crisis 1994-12 Saudi Arabia fixes the riyal to the US dollar at 3.75 1986-06 Plaza Accord dollar devaluation 1985-09 US dollar index peaks at its all-time high 1985-02
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-2.7% · 5d -6.8%80%10 0.46✓ matches cascade
ETH ETHSHORT-7.5% · 5d -7.1%67%15 0.26✓ matches cascade
MSTR MSTRSHORT-6.3% · 5d -4.2%63%30 0.20✓ matches cascade
High-yield credit HYGSHORT-0.4% · 5d -0.4%62%26 0.19·
SPX SPXLONG+0.8% · 5d -0.4% ↺ fades59%39 0.17⚠ differs
Gold XAULONG+0.3% · 5d -0.8% ↺ fades57%28 0.12✓ matches cascade
10y yield DGS10SHORT-6bp · 5d +0bp ↺ fades53%39 0.05·
USDJPY USDJPYLONG+0.5% · 5d +0.1%52%33 0.03⚠ differs
EURUSD EURUSDSHORT-0.6% · 5d -0.6%52%27 0.03⚠ differs
GBPUSD GBPUSDSHORT-0.3% · 5d -0.6%52%27 0.03⚠ differs
Volatility VIXSHORT-2.7% · 5d +4.7% ↺ fades51%35 0.02⚠ differs
NDX NDXLONG+0.2% · 5d -0.4% ↺ fades47%37 0.00⚠ differs
XLK XLKLONG+0.2% · 5d -0.4% ↺ fades46%28 0.00⚠ differs
US dollar DXYLONG+0.0% · 5d +0.2%46%39 0.00⚠ differs

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.