Takata's Hawkish Comments Send USD/JPY into Minor Decline
USD/JPY dipped slightly in early Europe after Bank of Japan hawk Hajime Takata hinted at a possible 50bp September hike or consecutive hikes.
Takata's comments, although not surprising given his minority position on the BoJ policy board, suggest a quicker pace of hikes than expected.
ING expects the BoJ to pause after any September hike, but a hawkish Federal Reserve could keep USD/JPY trading in the 160-162 area for longer.