The Bank of Japan today raised rates by 25bp to 1.25%, the highest level in 31 years. As a result, the yen actually plunged further, nearing 158 and putting the 160 level in jeopardy. Ueda Kazuo's comments were too dovish, and the market voted with its feet. The carry trade never really stopped—once 160 is triggered and intervention kicks in, short-term volatility will be extremely intense.