BoJ's Uchida: Today's decision took into account the risk of having to raise rates by a large margin if policy adjustment is delayed

Ueda wasn't there, that's crucial

The yen's recovery toward 160.15 suggests the market is finally getting the policy tightening it had been waiting for. The BOJ's rate hike to 1%, its highest level since 1995, was widely expected, but Uchida's comments were arguably more important than the move itself.

His warning about the risks of delaying policy adjustments signals that the BOJ is becoming more concerned about inflation pressures, especially as underlying inflation approaches its 2% target. That gives the impression that further tightening remains on the table, even if policymakers continue to move cautiously.

At the same time, the reopening of the Strait of Hormuz and improving risk sentiment have reduced some pressure on Japan's energy outlook. However, given the country's heavy reliance on Middle Eastern oil, the yen remains highly sensitive to any renewed regional tensions.

Initial resistance stands at 160.50, while the first support is at 159.00.

R1: 160.50S1: 159.00
R2: 161.50S2: 158.30
R3: 162.40S3: 157.50