Strategists indicate that the yen carry trade, which has been a significant factor in the recent selloff of Japanese stocks, is poised for a resurgence as market volatility decreases. Following a period of substantial yen short positioning in the aftermath of COVID-19, shifts in the Bank of Japan's (BoJ) policy could lead to increased speculative long positions in the yen. Analysts suggest that the current wide interest rate spread between Japan and the U.S. will sustain this trend in the short term. The potential for renewed yen carry trading comes amid ongoing discussions about the implications of volatility on market dynamics, particularly concerning major stocks like Nvidia ($NVDA). Experts are closely monitoring these developments, as a spike in volatility could impact broader market sentiment.