Shengbao Bank: After the Central Bank of the United States and Japan's decision, there seems to be a new arbitrage reason for the yen trading.

Jinshi data, December 19th, Shengbao Bank’s chief investment strategist Charu Chanana said: "The hawkishness of the Federal Reserve and the pause in interest rate hikes by the Central Bank of Japan may provide new arbitrage opportunities for yen traders. The only factor hindering new arbitrage trades is the intensification of volatility - this means that the US dollar against the yen may encounter strong resistance at 160. However, this time the decision of the Central Bank of Japan has some hawkish tendencies - especially there is someone who opposes maintaining the interest rate unchanged, and more signs indicate a spiral pump in wages and prices. However, considering the uncertainty surrounding the Federal Reserve and President Trump’s term, it is unlikely that the Governor of the Central Bank of Japan, Haruhiko Kuroda, will clearly signal an interest rate hike in January next year.