Mizuho Securities strategists Masafumi Yamamoto and Masayoshi Mihara said in the report that the market has digested expectations for the Bank of Japan to raise interest rates at today's policy meeting, but if Governor Kazuo Ueda does not reveal a signal for the next rate hike, the yen will face downward pressure. This seems more likely to happen under the dovish rate hike scenario. The USD/JPY exchange rate may test the 157 level and rise to the recent high of 157.89 hit on November 20. On the other hand, if Kazuo Ueda's remarks advance the market's expectations for the next rate hike, then the focus will be on whether the USD/JPY can fall below the 154.35 mark hit on December 5. As overseas markets enter the holiday season, the foreign exchange market may basically stabilize, or continue the trend after the Bank of Japan's policy adjustments.

Mizuho Securities strategists Masafumi Yamamoto and Masayoshi Mihara said in the report that the market has digested expectations for the Bank of Japan to raise interest rates at today's policy meeting, but if Governor Kazuo Ueda does not reveal a signal for the next rate hike, the yen will face downward pressure. This seems more likely to happen under the dovish rate hike scenario. The USD/JPY exchange rate may test the 157 level and rise to the recent high of 157.89 hit on November 20. On the other hand, if Kazuo Ueda's remarks advance the market's expectations for the next rate hike, then the focus will be on whether the USD/JPY can fall below the 154.35 mark hit on December 5. As overseas markets enter the holiday season, the foreign exchange market may basically stabilize, or continue the trend after the Bank of Japan's policy adjustments.