Minutes from the BoJ’s April meeting reveal board members pushing for faster rate hikes, countering softer Japan CPI data.
The USD/JPY pair retreated to 161.00 in Asian trading, snapping a five-day winning streak as the Japanese Yen strengthened. The move followed the release of the Bank of Japan’s April meeting minutes, where some board members advocated for swifter interest rate hikes to prevent inflation overshooting.
Japan’s May CPI rose 1.5% year-over-year, below expectations, but BoJ Deputy Governor Himino indicated further rate hikes are likely. Officials also highlighted currency fluctuations as a key economic factor, fueling speculation of potential government intervention.
The near-term bias remains bullish for USD/JPY, though BoJ policy normalization and intervention risks provide support for the Yen.