German Commerzbank analyst Volkmar Bauer stated in a report that the Japanese yen might weaken if the Bank of Japan keeps interest rates unchanged on Tuesday and remains cautious about future rate hikes. According to Odaily, Bauer noted that the market expects the Bank of Japan to provide a clear signal of a potential rate hike in June, assuming the Iran conflict eases by then. If such a signal does not materialize, warnings from Japan's Ministry of Finance about intervening to support the yen will "no longer be of much help." Bauer indicated that in this scenario, the USD/JPY exchange rate could rise above 160.