Some deep thoughts on the issue of yen interest rate hikes: 1. The Bank of Japan raising interest rates contradicts the Japanese cabinet's loose monetary policies, so it might not even happen. 2. If the yen does hike rates, how much will it increase? A tiny hike is still a hike, but raising rates too much would go against the yen's status as the world's largest carry trade currency and wouldn't benefit Japan's economy. So even if rates are raised, low interest rates will likely remain in the long term. 3. The U.S. is about to enter a new round of monetary easing. If Japan significantly hikes rates, it would be like Japan reaping profits at the expense of the U.S. economy. Would the U.S. "daddy" allow that? 4. What's the dominant capital in the current market? In a volatile market, it's arbitrage funds; in a rebound or upward trend, it's spot funds. Judging from yesterday's collective calls from the big players, arbitrage funds might not have the upper hand. So even if there is a rate hike, the impact might be limited. Thinking about it this way, is there really any need to worry too much about yen rate hikes?