Charu Chanana: The Bank of Japan's rate hike is not strong enough to boost the yen

Charu Chanana, Chief Investment Strategist at Saxo Bank, stated that the Bank of Japan's policy is insufficient to force a significant appreciation of the yen. The USD/JPY pair remains fragile around the 160 level. A rate hike by the Bank of Japan cannot offset the yield gap between the United States and Japan, and the 7-to-1 voting result weakens the market signal. If USD/JPY stays above 160, the risk of intervention persists.