USD/JPY Surges Amid Fears of Yen Intervention
The USD/JPY currency pair has continued to rise, trading around 157.60 on Wednesday as the Japanese yen extends its losing streak to a fourth day.
Amid Japan's long weekend, markets are closely monitoring the possibility of currency intervention following reports that the Bank of Japan conducted rate checks with market participants at the end of last week.
A strong US dollar is placing additional pressure on the yen, supported by hawkish comments from Federal Reserve officials which keep expectations of further US rate hikes high.
The Bank of Japan raised interest rates last week and Governor Kazuo Ueda reaffirmed his readiness to continue tightening monetary policy as economic conditions evolve, but noted that financial conditions would remain sufficiently accommodative to support the economy.