BOJ governor Ueda says the possibility of further rate hikes will be data-dependent

BOJ's Statement and Market Reaction

BOJ Governor Ueda emphasized that the possibility of further rate hikes will be data-dependent. He indicated that today's hike was triggered by lower risks to inflation and growth. However, market participants are skeptical about the likelihood of another rate hike, especially since the threshold for a potential hike in March will be even higher. Ueda is maintaining a cautious stance, signaling a data-dependent approach rather than being overly aggressive. This situation is crucial for the market, creating uncertainties.

Technical Points

Currently, USD/JPY is closing at 156.38, with the next key resistance level at 156.90, which marked the earlier highs in December. A breakthrough of this level could suggest further upward movement. However, caution is advised. The BOJ's statements and the movements of the dollar-yen pair could significantly impact the market, especially with economic indicators and central bank decisions on the horizon. Traders must continuously monitor the latest information and manage risks accordingly.