the yen reached a 10-week high against the dollar. Chris Turner, an analyst at ING, stated in a report that if the upcoming inflation data supports market expectations of further interest rate hikes by the Bank of Japan, the yen may strengthen further.

Data shows that the market expects a high possibility of a rate hike by the Bank of Japan in July, but it is not fully factored in until September with a 25 basis point rate hike expectation.

Turner stated that it is surprising how strongly the yen has reacted to these "relatively modest interest rate changes." However, despite the possibility of further pushing the USD/JPY lower in the short term, the USD/JPY exchange rate is not expected to decline significantly.