The yen could strengthen beyond 150 against the dollar as the BOJ moves against the global tide of rate cuts, said SMBC Nikko Securities.

The yen hit a two-month high in the upper 151 range against the U.S. dollar Thursday in Tokyo, as speculation grows that the Bank of Japan could further raise interest rates sooner than expected. The yen's appreciation came after BOJ policy board member Naoki Tamura said the bank should hike its policy rate to at least 1 percent by the latter half