BoJ Hawk Takata's Hints Offset by Fed's Hawkish Stance

The Japanese Yen (USD/JPY) is slightly lower after Bank of Japan (BoJ) hawk Hajime Takata hinted at a possible 50bp September hike or back-to-back moves.

Takata, who has been in the minority on the BoJ policy board, suggested that the central bank could increase interest rates to neutral at 2.00% quickly.

However, ING expects the BoJ to pause after any September hike, as Takata's views are not shared by his colleagues.

The hawkish Federal Reserve (Fed) stance is seen as a game-changer for USD/JPY, suggesting it can spend more time in the 160-162 area.