Gate.io: If Japanese inflation data boosts rate hike bets, the yen may further appreciate

On February 20th, Jinshi data reported that the Japanese yen reached a 10-week high against the US dollar. Chris Turner, an analyst at Rabobank, stated in a report that if the upcoming inflation data supports the market’s expectations of further interest rate hikes by the Central Bank of Japan, the yen may strengthen further. The market expects a high probability of a rate hike by the Central Bank of Japan in July, but it is not fully priced in until September with expectations of a 25 basis point hike. Turner noted that the yen’s strong reaction to these relatively modest interest rate changes is surprising. However, despite the possibility of further downward pressure on the USD/JPY in the short term due to Japanese inflation data, the USD/JPY exchange rate is not expected to fall significantly.