Last week, the U.S. Federal Reserve — America’s central bank — conducted what is known as a “rate check” in the foreign-exchange market.
So what actually happened to USD/JPY at that moment?
Some observers rushed to headline figures —
“Yen surges by X,” “Yen crashes by Y.”
Ironically, the more someone speaks that way, the more they reveal their lack of real market experience.
For those of us who actually manage money, the takeaway was entirely different:
“No capital was deployed — yet the market’s mood flipped instantly.”
That is the essence of what happened.
Let’s break it down calmly.
