Mizuho stated that the Bank of Japan's pause on interest rate hikes will put pressure on the yen.

Jin10 data reported on May 1, Mizuho stated that the "temporary pause" in the Bank of Japan's monetary tightening cycle will increase selling pressure on the yen, with market attention shifting back to Japan's low interest rate environment. "The cooling of interest rate hike expectations has intensified the risk of yen depreciation," wrote Shoki Omori, chief strategist at Mizuho Securities in Tokyo, adding that the trend of the dollar will still be key. "Although Bank of Japan Governor Kazuo Ueda has mentioned that the positive interaction between wages and prices is still ongoing, the brief explanation highlights the cautious tone of his statement," Omori said; "this stance further complicates the short positions on the dollar/yen."