December 2nd was quite interesting. The Federal Reserve announced it would stop quantitative tightening, and the market immediately began betting on a rate cut in December. U.S. stocks responded by rising, and Bitcoin also rebounded, basically wiping out the previous panic-driven drop caused by rumors of a rate hike from the Bank of Japan.

Looking at it now, the emotional impact of Japan's rate hike has faded quite a bit. However, the exchange rate may still remain under pressure—for reference, when Japan actually raised rates this January, the yen fell from around 155 to roughly 145 against the dollar.

If the exchange rate really continues to fall, some of those arbitrage funds may actually pull out. Next, it’ll come down to when this pressure can find a balance with the expectations of monetary easing in the U.S.