Mitsubishi UFJ: The yen is expected to continue to be supported by the prospect of interest rate hikes.

On May 23, Derek Halpenny, an analyst at Mitsubishi UFJ, said in a note that the yen should continue to be supported, as Japan's latest inflation data should keep the possibility of another interest rate hike later this year alive. He said that although the expectations for the Bank of Japan to raise interest rates this year are not high, the expectations for the Bank of Japan to raise interest rates this year are also unique, considering that the other G10 central banks are cutting interest rates. This should weigh on USDJPY as "market participants are more convinced of the prospect of further rate cuts by the Fed later this year." ”