The USD/JPY pair has retraced recent losses, currently trading around 149.40 during European trading hours. However, analysts caution that the pair’s upward potential may be curtailed. Rising expectations of further interest rate hikes by the Bank of Japan could provide essential support to the Japanese Yen. Traders should closely monitor these developments, as they could redefine the currency pair’s trajectory in the coming sessions. Thus, understanding the interplay between central bank policies and market movements is crucial for informed trading decisions.