USD/JPY Extends Winning Streak on Powell's Hawkish Remarks, Intervention Concerns Arise

The USD/JPY currency pair has been on a winning streak for the last five days. It reached around 151.40 in early European trading, thanks to unexpected hawkish remarks made by Fed Chair Jerome Powell. Powell expressed concerns about inflation during an IMF event, which raised US Treasury yields and strengthened the USD against the JPY. This has led Japanese authorities to consider intervening to limit the USD/JPY pair's rise.

The US Dollar Index (DXY) surged to around 106.00, and the 10-year US bond yield increased to 4.62% due to Powell's statements. Meanwhile, the Bank of Japan (BoJ) remains dovish on their monetary policy, with Governor Kazuo Ueda emphasizing a cautious approach to exiting ultra-loose monetary policy.

The Japanese Yen is under pressure as lower wage growth may delay plans to exit the easy monetary policy. Decent wage growth is crucial for the BoJ to consider policy changes. Traders are closely watching the Fed's Logan speech and the preliminary Michigan Consumer Sentiment Index for November for trading cues in the USD/JPY pair.

The USDJPY is continuing its bullish trend beyond 151.00. The BoJ may intervene, creating volatility.