Saxo Bank: Uncertainty remains, and the Bank of Japan finds it difficult to make clear predictions.

Saxo Bank stated that since the market has factored in an interest rate hike expectation slightly above 10 basis points for the remainder of this year, the Bank of Japan's meeting might not cause much disruption. With the specific details of the US-Japan trade agreement still unclear, the Bank of Japan also finds it hard to make a clear prediction. Additionally, the Japanese negotiating team may be deliberately delaying the negotiation process to avoid political losses in the upcoming Senate elections in July. Some sources from Japanese media suggest that the Bank of Japan may raise its concerns about inflation, but considering that the Bank of Japan is clearly executing a policy of 'financial repression' (keeping interest rates far below inflation levels to effectively lower the government debt burden), the key actually lies in the pace of its government bond purchases. There could be significant changes in the yen later this year, but it is nearly impossible to accurately grasp the timing of the yen's rebound in the short term. From the perspective of market positioning, the most likely 'reverse painful trade' to occur is further weakness of the yen.