Japan's fiscal concerns are reshaping currency market dynamics in unexpected ways. Rising government spending worries combined with inflation creeping back onto the radar have started to unravel the yen's historically tight correlation with the dollar and JGB yields—relationships that traders have relied on for years. This shift is significant enough that major financial institutions are reconsidering their playbooks. HSBC strategists recently flipped their forecasts on the back of these developments, signaling that the traditional playbook for yen behavior may no longer hold. When central bank policy and fiscal trajectories shift this dramatically, it creates ripples across multiple asset classes worth paying attention to.