USD/JPY approaches 150.00 with eyes on BOJ intervention

• The dollar continues to rise and reaches the area of ​​149.70.
• Investors hold their breath on possible BOJ intervention at 150.00
• USD/JPY recovery could reach 160.00 — Nordea.

The dollar resumed gains on Wednesday and is up for eleven consecutive sessions, with the pair hitting session highs of 149.70 so far, approaching the psychological level of 150.00, which some market sources say could trigger a Bank of Japan intervention. .

All eyes are on a possible BOJ intervention

With the Japanese yen falling in general, USD/JPY has risen nearly 30% since March, hitting 32-year highs. The US dollar is now moving well above the 145.00 level, which triggered the Bank of Japan’s first intervention since 1998 in September.

US Treasury yields rallied on Wednesday as the market focused on the Federal Reserve’s monetary policy meeting scheduled for November 1-2. The bank is expected to raise the fed funds rate by 75 basis points for the fourth consecutive time, giving the dollar a further boost after trading without clear direction for the past two days.

Monetary policy divergence is the main reason for the yen’s weakness. The Bank of Japan lags behind major central banks, which are already in a tightening cycle, which is crushing demand for the yen.

USD/JPY could hit 160.00 – Nordea

FX analysts at Nordea Bank see further upside potential in the pair and point to a possible target of 160.00: “With rate spreads continuing to worsen, we see USD/JPY trading as high as 160 at times, even with the intervention of the Japanese government (…) What will stop the weakening of the JPY is a change in the monetary policy of the Bank of Japan or a 180 degree change of all the other central banks of the G10″.

Technical levels to watch