Author:  L. Rahman Affiliation:  Independent Researcher Abstract The yen carry trade—borrowing in Japanese yen at relatively low interest rates to invest in higher-yielding assets elsewhere—has long functioned as a quiet engine of global liquidity. In early 2026, it has re-entered the spotlight as Japan’s political and monetary environment shifts and as markets reassess how “safe” yen-funded leverage really is. This article explains why the yen carry trade is trending again,