BoJ's 1.25% Hike May Not Save Yen Against USD/JPY Pressure
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An expected BoJ hike to 1.25% is on the table, but traders are questioning whether that alone can arrest USD/JPY's ascent following the Fed's hawkish decision.
The pair's direction now hinges heavily on Governor Ueda's tone; without clear signals of further tightening ahead, any BoJ move risks being read as a one-off rather than the start of a sustained cycle.
Japan's upcoming CPI print adds another layer, with a hot inflation reading potentially forcing the BoJ's hand and giving the yen a stronger footing against the dollar.