The Bank of Japan is signaling that wage growth will likely persist in the coming months, a positive signal for inflation expectations in Asia's second-largest economy. However, the outlook isn't entirely bullish—rising tensions with China are introducing significant uncertainty into the picture. These geopolitical headwinds could dampen economic momentum and weigh on investor sentiment, particularly for risk assets including crypto markets. The interplay between domestic wage momentum and external political risks presents a complex backdrop that traders should monitor closely as policy decisions unfold.