Market attention will now turn to comments from Governor Ueda at this week’s policy meeting to see what message he delivers over the future timing of rate hikes and what level of unease he displays over recent Yen weakness.

If BoJ Governor Ueda steps back from providing a strong signal over the possibility of rate hikes by the turn of the year, it will increase the burden on the Japanese government to support the Yen through intervention like late last year if the USD/JPY jumps back above the 150.00 level and moves to retest last year’s high at 151.95.