USD/JPY Intervention Risk Grows Amid Thin Liquidity
The USD/JPY currency pair has seen a rebound since hitting a low of around 153.00 earlier this month, and is currently trading at around 157 after falling roughly 2% last week.
This decline came despite the Bank of Japan's (BOJ) decision to raise its policy rate by 25 basis points to 1.25%, which some analysts saw as a hawkish move.
However, two dissenting votes from Takaichi-appointed members and little urgency from Governor Ueda over future tightening measures have left traders questioning the BOJ's commitment to further rate hikes.
Meanwhile, the US dollar side of the equation remains supportive, with the Federal Reserve's more hawkish tilt lifting US rate expectations and 10-year Treasury yields hovering just below 5%.
In terms of technical analysis, the next immediate test for USD/JPY sits at around 157.52, the 61.8 Fibonacci retracement level, before reaching the 200-day moving average at around 158.39.