The Japanese yen held around 155.6 on Friday after two consecutive sessions of gains, supported by speculation that the Bank of Japan may raise interest rates next week and continue tightening into 2026. Earlier this week, Governor Kazuo Ueda noted that the central bank is getting closer to its inflation target, signaling the potential for a near-term rate hike. Investors will also focus on Ueda’s post-meeting remarks for guidance on next year’s policy. Reports indicate that top officials in Prime Minister Sanae Takaichi’s cabinet are unlikely to oppose a rate increase, citing concerns that a weak yen, largely due to delayed BOJ tightening, is driving higher import costs and inflation. The yen has also benefited from broad dollar weakness after the US Federal Reserve cut rates as expected and delivered a less hawkish outlook than markets anticipated.