Yen finding a few bids after the Bank of Japan rate hike

The rate hike post is here:

• Bank of Japan hikes rates - as widely expected

USD/JPY dipped lower on the Statement and forecasts. Its dropping further now. yen crosses lower alongside.

The danger is further yens strength if Bank of Japan Governor Ueda is hawkish at his forthcoming press conference, scheduled of r0630 GMT / 0130 US Eastern time.

From that post linked above, you can see that the BoJ is not expecting the CPI to drop back under its 2% target any times soon:

• The BOJ board’s median forecast for core CPI in fiscal 2024 is +2.7%, up from +2.5% in October.
• The BOJ board’s median forecast for core CPI in fiscal 2025 is +2.4%, up from +1.9% in October.
• The BOJ board’s median forecast for core CPI in fiscal 2026 is +2.0%, up from +1.9% in October.

This will clear the way for further rate hikes ahead.