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BOJ reportedly considering March rate hike but outcome is still too close to call

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The report says that the BOJ is definitely considering a move to raise interest rates in March. However, the outcome of the decision is still too close to call between that and a move in April. But if the Japanese central bank does hold in March, it may send a signal to hike rates soon after. As for what conditions might force the BOJ to act next week, the sources say that the BOJ will put judgment based on the spring wage negotiations outcome.

USD/JPY dipped initially on the headline from 147.50 to 147.22 but has retraced that move almost immediately now. I reckon that shows the confidence of yen bulls at the moment amid all the ambiguity. That is not to mention the upcoming risk factor of the US CPI data release as well.

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