Ueda Kazuo's latest speech has settled the dust. The Bank of Japan this time adopted a dovish rate hike approach, which is completely opposite to the Fed's previous "hawkish rate cuts." Interestingly, there has been a running joke in the market — the Bank of Japan is just a branch of the Federal Reserve, and this time it proved it once again.

Carefully examining Ueda Kazuo's tactics, it's clear that he talks about easing but is actually tightening liquidity. The rate hike sounds like locking in money, but a bunch of dovish remarks are thrown out, like giving the market a "dovish calming agent," psychologically easing fears of tightening.

What was the result? The USD/JPY jumped directly to 156.37. For risk assets like Bitcoin, this is the best news — the yen is becoming increasingly worthless.

Why does the yen keep falling? Carry Trade is still profitable. Borrowing yen has always been cheap, and funds are easy to access; plus, yen depreciation means that when repaying debts in the future, fewer yen will be needed, effectively reducing trading costs further.

How do major global capital and hedge funds play this? The logic is clear — borrow depreciating yen, convert to strong USD, then pour everything into Bitcoin, tech stocks, and other high-volatility, high-return assets. Simply put, yen depreciation is a powerful catalyst for risk assets.

A key level to watch is: 152. As long as USD/JPY stays above this level and doesn’t fall below, the yen remains in a clear weak zone, and the upward momentum of risk assets will not collapse.