USD/JPY: BoJ's Ueda notes more hikes in the pipeline – BBH

USD/JPY is holding above technical support at 154.00, BBH FX analysts note.  

BOJ policy rate likely to peak around 1.00%

"Bank of Japan (BOJ) Governor Ueda stuck to the bank’s guidance. Ueda noted that more hikes are in the pipeline if the economic and price outlooks are realized but cautioned that monetary policy will remain accommodative to support price trend."

"The comments suggest the BOJ policy rate will likely peak around 1.00% over the next two years, in line with market pricing. This seems about right as the BOJ expects inflation to stabilize around its 2% target in 2026. Bottom line: the BOJ shallow policy normalization cycle is an ongoing headwind for JPY."