The Bank of Japan's rate hike has widened the yield gap with the U.S. and Europe, leading to a slide in the yen's value. The yen, being the lowest-yielding G10 currency, is used for carry trades, contributing to its drop to a 34-year low. China's shares surged while Japan's slid, with the yen hovering near the intervention zone. The weakening of the yen was influenced by strong U.S. data, increasing the risk of Japanese foreign exchange intervention.