Rabobank analyst Jane Foley said the Bank of Japan needs to deliver a clear
signal on future hikes on Friday to prevent further yen weakness. With many G10
central banks already tightening and more expected to follow, she said the BoJ
faces pressure to normalize policy; a signal that a hike could come in October
rather than December would likely support the yen this week. Foley added the
yen's rebound also depends on comments from Fed chair Kevin Warsh after the rate
decision, particularly whether he reinforces or downplays market bets on further
US tightening.
