[Market Expects Bank of Japan to Keep Interest Rates Unchanged, Traders Focus on Forex Intervention Risks] Jin10 News, January 20 – The Bank of Japan is expected to keep its benchmark interest rate unchanged on Friday, a move unlikely to provide immediate support for the yen. Analysts widely anticipate that if the yen weakens further, the Japanese government may intervene in the forex market as early as the same day, keeping traders on high alert. As of Tuesday morning Tokyo time, the USD/JPY was trading near 158.20, not far from the 160 level, which is seen as a critical threshold. In 2024, Japanese authorities had intervened multiple times near this level to buy yen and support the exchange rate. Sources familiar with the matter revealed last week that Bank of Japan officials are closely monitoring the impact of exchange rates on inflation, as further yen depreciation could accelerate future rate hikes. Nomura Securities Chief Strategist Ryotaro Matsunaga stated: 'The Bank of Japan may hint that the threshold for the next rate hike is not high, to avoid exacerbating yen depreciation. They might leave room for action as early as April.'