USD/JPY Analysis: BoJ Tightens the Grip — Will the Yen Reverse Course?

On June 16, the Bank of Japan raised its policy rate to 1.0% (7-1 vote) and confirmed a gradual taper of government bond purchases, settling at a “cruising” pace of ¥2 trillion monthly from April 2027. The message is clear: normalisation continues, as inflation risks remain skewed to the upside of the 2% target.