The latest decision by the Bank of Japan seems moderate on the surface but secretly contains hidden implications.

On one hand, raising the interest rate to a new high of 0.75%, on the other hand, signaling market reassurance with "no plans for the next rate hike." This approach is truly clever—appearing dovish on the surface, but fundamentally maintaining a tightening stance.

What the market is currently celebrating are just the combined effects of three things. First, the long-anticipated negative news finally materialized; second, the short-term relief from the yen's depreciation; third, the last trading frenzy before the Christmas holiday. But don't be fooled by these illusions.

Carry Trade positions that should have been liquidated under rate hike pressure are now able to cling on a few more days thanks to the phrase "postponed rate hikes." The noose hasn't been loosened, only temporarily slackened. This is not rescue; it's a death sentence deferred.

As for the recent rebound? The liquidity has already become as thin as paper. The main players have long gone on vacation, leaving only robots fighting among themselves. At such times, even the slightest breeze can expose the surface prosperity.

Continuing to dance while this dance hasn't stopped is not wrong, but the smart move is only one—always staying as close as possible to the exit.