The Bank of Japan may raise interest rates on Friday if sudden market turmoil related to US President Donald Trump taking office does not change plans. The hike, which would raise short-term rates to levels not seen since 2008, would be a major policy move for the regulator.

Key Rate and Analysts' Suggestions

The key rate is currently at 0.25%, but analysts suggest the Regulator plans to gradually raise it to 1%.

Market Expectations and Yen Strengthening

Expectations of action from the Bank of Japan have already led to the strengthening of the yen, and the probability of a rate hike is estimated by the market at 80%.

Technical Analysis and Local Downtrend

Technically, the local downtrend persists and with a high probability we may soon see an update of the local low located around 155.00.