June 17 (Reuters) - USD/JPY could rise to test a 2026 peak despite this week's Bank of Japan rate hike and authorities' worries about yen weakness. The BOJ raised interest rates to a 31-year high on Tuesday in a landmark step in its policy normalisation, signalling readiness to tighten further as it focuses on taming price pressures from the Iran-war-induced energy shock. However, policymakers offered few clues on the timing of the next rate hike. Elevated USD/JPY has seen a 160.26-160.45 (EBS) range on Wednesday, leaving traders on alert for any potential intervention from Japan to shore up the persistently weak currency. However, a lack of action by authorities could help spur yen sales across the board.

USD/JPY remains on course to test the 2026 160.72 peak recorded in April, a break above which would unmask the 161.00 psychological level initially and put Japanese authorities under pressure to act.
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(Martin Miller is a Reuters market analyst. The views expressed are his own)