Rate Hike Speculation Sends Yen Soaring

The Japanese yen strengthened past 152 per dollar, its highest in nearly two months, as expectations grow for continued BOJ rate hikes. BOJ board member Naoki Tamura suggested raising the policy rate to at least 1% by fiscal 2025. Household spending rose 2.7%, the first increase in five months, while real wages grew for a second month, supported by higher winter bonuses. Market speculation now focuses on a potential 5% wage increase in Japan's spring negotiations.

The key resistance level is 153.85, with a break above targeting 154.90 and 156.00. On the downside, major support stands at 151.25, followed by 149.20 and 147.10.