Will the Yen "counterattack"? The Bank of Japan may turn hawkish, hiding big market volatility!


Markets expect that the Bank of Japan will most likely keep interest rates at 0.75% at next week's meeting, but their stance may shift to a more "hawkish" tone.
The core reason is simple: the yen continues to weaken, pushing up domestic prices, which has already touched its dual bottom line of "price stability + financial stability."
Currently, the USD/JPY remains below the critical 160 level, but a key variable is about to appear—after the meeting, during the "Golden Week," market liquidity will decline.
This low liquidity environment often creates space for intervention in the exchange rate.
Once Japan intervenes, the yen could experience rapid, even "reflexive" appreciation fluctuations within the 150–160 range.
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin