Yen Faces Further Weakness as Markets Await BOJ Rate Hike Signal

The Japanese Yen is facing further weakness unless the Bank of Japan signals rate rises. Market participants are closely watching the central bank's next move, as a hike in interest rates would strengthen the currency. The BOJ has maintained a dovish stance so far, keeping rates at historic lows to stimulate economic growth.

The market is pricing in a high probability of a rate rise, with some analysts predicting a 50% chance of a 0.25% increase by the end of the year. However, others are cautioning that the BOJ may not act until next year or even later, citing concerns about the global economic outlook.