USD/JPY under pressure as BOJ's Tamura signals rate hikes at intervals

The Asia-Pacific session saw USD/JPY face downward pressure as BOJ board member Naoki Tamura delivered the session's most hawkish central bank signal, stating that underlying inflation has already reached the 2% target and calling for rate hikes at intervals of a few months toward a neutral rate. This hawkish rhetoric strengthens the case for continued yen appreciation against the dollar in the near term. Geopolitical developments added a risk-off undertone as Iran's IRGC rejected the Omani-IMO Hormuz transit framework, carrying an implicit threat to commercial shipping lanes. However, crude oil saw only a modest upward reaction as vessel traffic continues to transit the strait successfully, limiting the impact on commodity-linked currencies. The combination of BOJ hawkishness and geopolitical uncertainty favors defensive positioning. Traders should monitor upcoming BOJ meeting communications for confirmation of the tightening trajectory, while keeping an eye on Strait of Hormuz developments that could amplify risk-off flows and further support the yen as a safe-haven currency.