Golden Finance reported that overnight index swaps on Friday showed that the probability of the Bank of Japan taking action at the January 23-24 meeting was as high as 99%, a sharp increase from 71% on Wednesday. Bank of Japan Governor Kazuo Ueda reinforced market expectations on Wednesday, with his comments pushing the yen higher. He said the central bank would make a decision on raising interest rates next week and said confidence in wage growth was growing. On Thursday, that signal became even more pronounced. Foreign media reported that unless Trump's entry into the White House brings too many surprises, Bank of Japan officials believe that it is very possible to raise interest rates. The yen is enjoying its biggest weekly gain since late November last year. Japanese government bond yields rose across the board, with the 2-year government bond yield, which is sensitive to monetary policy expectations, rising to its highest level since 2008 on Wednesday. "It is now almost certain that the Bank of Japan will raise interest rates next week," said Yukio Ishizuki, senior currency strategist at Daiwa Securities in Tokyo. "The final hurdle is Trump's policies, but I don't think markets will become extremely volatile as a result of his inauguration speech."