Japan's Finance Minister Satuki Katayama has issued a warning to speculators, stating that authorities are prepared to respond to forex market fluctuations at any time. According to Jin10, this announcement comes just hours before the Bank of Japan is set to reveal its policy decision. Katayama emphasized the readiness to take decisive action if necessary, and when asked about the government's vigilance during Japan's upcoming Golden Week holiday, she confirmed their preparedness for round-the-clock intervention.
The Bank of Japan is expected to announce its latest interest rate decision shortly, with the market widely anticipating no change. The voting outcome will be closely watched as the market assesses the possibility of a rate hike in June. Governor Kazuo Ueda's remarks at the post-decision press conference will also be scrutinized.
Pricing in the overnight swap market indicates a less than 3% probability of a rate hike on Tuesday, while the likelihood of a June rate increase has risen to 65%. The USD/JPY is currently trading around 159.5, near the level where authorities intervened in the forex market in 2024.