Yen intervention risk and volatility regime shift

The US Treasury signaled readiness to intervene in the yen market after Japan's $73B intervention failed to hold 160. The yen is bracing for battle at 155, with markets wary of 'early-morning intervention' tactics. Meanwhile, the VIXEQ-VIX spread signals a critical week for markets, with the 10-year yield at an inflection point. A sudden yen spike could pressure carry trades and spill into U.S. and Asian equities, especially with tech earnings still in focus.