BOJ Deputy Governor Himino reinforced the central bank's intent to continue hiking rates, signaling policy normalization is not yet done. This keeps upward pressure on the yen and raises the stakes for carry trades and Japanese rate-sensitive assets.
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The AngleGenuinely two-sided
Bull caseUSD/JPY · FXY · SMFG · MFG
Continued BOJ hike signals narrow the US-Japan rate differential, historically the dominant driver of USD/JPY, suggesting room for further yen appreciation toward the 140–142 zone if Himino's resolve translates into a Q2 2025 hike.
Bear caseUSD/JPY · FXY · SMFG · MFG
The BOJ has repeatedly signaled hawkishness only to delay action amid global volatility — markets may discount Himino's comments as rhetoric rather than commitment, limiting yen upside and keeping carry trades intact.
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