🚨BANK OF JAPAN CALMS MARKETS Banks of Japan pledges no rate hikes during market instability. This sparked a rebound in Asian markets: - Japan +1.2% - Korea +1.8% - Taiwan +3.8% Monday's meltdown was due to rate hike fears, with SocGen warning about "unwinding the biggest carry trade ever." Global asset classes were shaken. But the waters have calmed (for now). Giddy up!

My points:”I believe that short-term fluctuations may have reached a bottom, there could still be similar volatility in the medium to long term. This is especially true given the Federal Reserve's expected interest rate cuts and the Bank of Japan's gradual approach to raising interest rates.However, the current interest rate of 0.25% by the Bank of Japan remains the lowest globally, and they have indicated a slow path towards increasing rates. It is reasonable to expect that there will be further yen carry trade closures and associated market pressures in the future.Perhaps in similar situations, we might not need to panic and rush to sell or short-sell; it could also be a good opportunity to buy on dips.The market performance in recent days has precisely illustrated this point. It suggest

For months now, market watchers have been buzzing about a popular trading strategy: borrowing yen at ultra-low rates and investing those funds in high-growth assets, like the "Mag 7".This strategy, known as "arbitrage trading," relies on borrowing cheaply and investing in high returns. This is a common strategy because carry trades can be very lucrative if they succeed.But when such a popular arbitrage strategy suddenly goes awry, the fallout can be significant.Concerns have been rising about this type of trading, partly because of the massive amounts of money involved—estimated at around $4 trillion. On July 31, the Bank of Japan raised its rate from 0.1% to 0.25%. Although this rate hike is still low, it’s the largest increase since 2007, and forex traders couldn’t ignore it.A seemingly