Yen trading at 159.70 against the dollar faces limits on gains despite the Bank of Japan's push for higher rates, according to SMBC Nikko Securities strategist Rinto Maruyama. Even with the BOJ signaling more hikes, yen appreciation may be capped if other central banks accelerate their own rate increases or reverse planned cuts, Maruyama states. Rising oil prices are cited as a key factor pressuring the yen.

The BOJ's February inflation report showed underlying consumer prices up 2.2% year-over-year, remaining above its 2% target and justifying the central bank's tightening path. Maruyama warns that the yen's potential gains are constrained by global rate dynamics. BOJ policy decisions continue to be closely watched by currency markets.