USD/JPY volatile as BoJ hikes rates to 30-year high of 0.75%

USD/JPY experienced significant volatility following the Bank of Japan's 25 basis point rate hike to 0.75%, marking the highest level in three decades. The pair initially spiked 0.8% to 157.20 before retracing to 156.45 as markets digested the implications of Japan's continued policy normalization. Governor Ueda's cautious tone during the press conference tempered hawkish expectations, suggesting a measured approach to future tightening. The decision reflects the BoJ's confidence in sustainable inflation and wage growth, diverging from other major central banks considering rate cuts. Technical indicators show immediate resistance at 157.50 (session high), with support established at 155.80 (50-day moving average). Traders are closely monitoring Ueda's upcoming comments for guidance on the pace of future hikes, which could determine whether USD/JPY breaks below the critical 155.00 support level.