BoJ rate hike this month are looming, supporting the yenUSD/JPYOANDA:USDJPYWiseLeoTradingMarkets widely anticipate a rate hike from the BoJ at its upcoming policy meeting on Jun 15-16 to bring the policy rate to 1.00%. Recent spikes in wage growth and household spending, alongside the Takaichi government's subsidy package, support this expectation and sustain consumption resilience. The BoJ aims to normalize policy and taper its treasury buying to steer the economy toward stable positive growth and anchored inflation around 2%, ultimately pulling the nation out of its multi-decade stagnation driven by prolonged negative interest rates. Meanwhile, geopolitical friction in Middle East ceasefire negotiations triggers high volatility for the currency, strengthening the US dollar against the yen and pushing the US dollar - yen toward the 160 level—a critical intervention zone for the MoF. Consequently, the yen might find support ahead of the BoJ decision, but volatility may persist due to evolving ceasefire talks and intervention risks. Technically, the US dollar - yen remains above bullish EMAs, signaling sustained upward momentum. If the pair holds above 159.8, price might continue rising to test the next resistance at 160.55. Conversely, a break below 159.8 and the EMA21 might push price down toward support at 158.65. By Van Ha Trinh - Financial Market Strategist at Exness