0121 GMT - With the Federal Reserve signaling another rate hike this year via its dot plot, the Bank of Japan is likely under even stronger pressure to deliver a rate hike on Friday and provide hawkish guidance on further action, says Daiwa Securities analyst Eiji Kinouchi. However, concerns are growing over whether the Japanese economy can withstand more monetary tightening, he says. "Capital expenditure is already contracting year over year, and historical trends show that the yen typically shifts stronger as the economy enters a recessionary phase," he adds. While a stronger yen eases inflation, it could cool economic growth, primarily by weighing on exporters' profits. The dollar is last trading at 156.12 yen.