Kazuo Ueda did not provide support for the hawks' bets, and the yen quickly gave back its gains.

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On November 21, Jinshi Data reported that the President of the Central Bank of Japan, Kazuo Ueda, stated that the economic impact of the exchange rate will be carefully considered. The USD/JPY exchange rate initially fell because Ueda did not provide sufficient evidence to support hawkish bets, causing the spot and options markets to quickly retreat. The 1-month USD/JPY options benchmark, covering the policy decisions of the Federal Reserve on December 18 and the Central Bank of Japan on December 19, implies a significant increase in volatility and premium, reflecting the increased risk associated with these key meetings. However, Ueda reiterated that the Central Bank of Japan will rely on more data before making any decisions at the December policy meeting.

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