Investors are betting the yen may rise as much as another 10% after the Bank of Japan’s unexpected policy shift fueled speculation it is finally abandoning its ultradovish monetary settings.

The currency may appreciate to ¥120 per dollar or stronger due to its inexpensive valuations, according to Generali Investments, while Union Investment Privatfonds predicts a short-run gain to about ¥125. Societe Generale forecasts the BOJ decision will trigger a hedging wave from overseas funds that may propel the currency higher over the next month.

The yen surged as much as 4.8% on Tuesday after the BOJ blindsided the market by raising its cap on 10-year bond yields to 0.5% from 0.25%. The rally came after the currency had already risen from a more than three-decade low in October as the market trimmed bets on Federal Reserve interest-rate hikes.