USD/JPY faces pressure as BOJ's Tamura signals decisive rate hikes ahead

USD/JPY came under renewed selling pressure following hawkish comments from Bank of Japan board member Naoki Tamura, who indicated the central bank could implement 'decisive' rate hikes despite potential US tariff risks. The pair declined 0.4% to trade near 156.20 as markets priced in a more aggressive BOJ tightening cycle. Tamura's remarks represent a significant shift in BOJ communication, suggesting policymakers are prioritizing domestic inflation concerns over external trade uncertainties. The hawkish stance contrasts sharply with the BOJ's historically ultra-accommodative policy framework. Technical analysis shows USD/JPY testing support at 156.00, with a break below potentially accelerating declines toward 155.50. Resistance stands at 156.80, coinciding with the 50-day moving average. The diverging monetary policy outlook between the Fed and BOJ could drive further yen strength, particularly if upcoming Japanese inflation data supports additional BOJ tightening.