YEN CARRY TRADE UNWIND JUST GOT DELAYED! Today, BOJ raised interest rates by 25 BPS and even called for more rate hikes. Still, USD/JPY pumped and hit the 158 level for the first time in two weeks. Typically, after a BOJ rate hike, USD/JPY falls, but this time it's the other way around. And the reason is the Fed, which has also started its rate hike cycle. When the Fed hikes rates, DXY gets strong, and the rate gap between the US and Japan goes up. This results in yen devaluation, which keeps the yen carry trade alive and results in more liquidity for the global markets.