The Yen carry trade unwinds...

I am curious about how to quantify the mixed impacts of the Federal Reserve’s rate reduction, which should theoretically boost US equities, and the Bank of Japan’s expected rate hikes, which could unwind more yen-carry trades and put pressure on US indexes. These positive and negative effects may offset each other, or one may outweigh the other. However, if the Fed is expected to start a series of cuts and continues to cut rates in the year ahead, the pressure on the BOJ to hike rates may be relaxed. This could potentially result in fewer rate hikes from the BOJ, as Japan’s inflation is mostly a result of a strong dollar (imported inflation such as imported food, fuel, and other staples becoming suddenly more expensive).