Hawkish Bank of Japan Signals Will Buoy Yen, Strategists Say.

The yen is primed for further gains after the Bank of Japan sent hawkish signals while raising the benchmark rate, according to strategists.

The upward revision in inflation expectations for the fiscal year 2025 has given room for the central bank to hike rates again this year. As expected by a majority of economists surveyed, the BOJ increased the key policy rate by 25 basis points on Friday, the largest increase in 18 years.

The BOJ rate hike is supportive for the yen and it is likely to further strengthen from here. All eyes on the Ueda press conference next. USD/JPY might see another leg lower if Ueda sticks to the hawkish tone. The immediate technical supports for USD/JPY are around 155.06.

Source: FINANCE.YAHOO