USD/JPY Under Pressure as BOJ Hike Bets Intensify

USD/JPY has been under pressure at the start of the week as investors reprice Japanese yields, which have risen to multi-decade highs. This comes amidst remarks from US Treasury Secretary Scott Bessent suggesting that the Bank of Japan (BOJ) may accelerate its rate hike pace. The comments have led to a strengthening yen and a decline in USD/JPY, with the pair falling back below 160.

The impact of these developments is unclear, however. Some analysts believe that the move reflects genuine repricing in Japanese rates, while others attribute it to month-end flows and portfolio rebalancing.