StoneX analyst Matt Simpson predicts the dollar could surge to 160 yen against the yen due to weak Japanese currency expectations and safe-haven flows. This level, last seen in July 2024, reflects low BOJ rate cut expectations and dollar preference. Simpson warns this could reignite speculation about Japanese authorities intervening to weaken the yen, though markets often test such levels to provoke action.

The dollar is currently at 159.76 yen, near the intraday high. Simultaneously, Sony Financial analyst Kumiko Ishikawa expects the yen to trade in a 158.80-160.40 range ahead of the BOJ's policy decision, focusing on oil prices and volatility risks. The yen's weakness is a key concern for the central bank as it assesses underlying inflation risks from the Middle East conflict.