Bank of Japan Deputy Governor Ryozo Himino said the central bank is likely to continue raising interest rates but offered no indication on the timing of the next move, as the conflict in the Middle East has heightened uncertainty surrounding the economic outlook.

Himino stressed that increased market volatility would not deter the Bank of Japan from tightening policy, arguing that monetary policy decisions should not be automatically linked to market fluctuations.

However, verbal guidance from the BOJ appears to be having limited impact on markets. Amid a strengthening U.S. dollar, the USD/JPY pair has accelerated its gains, with the market attempting to establish a foothold above the 157.00 level.