USD/JPY rebounds from 155.00 as BoJ Ueda didn’t provide specific timing for further interest rate hikes.
Japan Kato warned of possible intervention to support the Yen against excessive volatile moves.
Trump’s protectionist policies would accelerate US inflation and growth.
The USD/JPY recovers sharply from 155.00 in Monday’s North American session after a sharp correction on Friday. The asset bounces back as investors doubt the capability of the Bank of Japan (BoJ) to hike interest rates again in the near term.
In a meeting with business leaders in Nagoya, BoJ Governor Kazua Ueda kept hopes of more rate hikes alive by saying that the central bank will tighten the monetary policy further if the economy performs in line with its expectations. Ueda mentioned that the central bank is evaluating every factor including the risk associated with the United States (US) economy.
However, Ueda stayed vague on providing a specific timing for rate cuts, which forced traders to doubt BoJ’s ability to increase interest rates further.
Meanwhile, expectations of Japan’s intervention in the FX domain could offer some support to the Japanese Yen (JPY). On Friday, Japanese Finance Minister Katsunobu Kato warned of possible intervention if the yen fell too far and too fast.
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