USD/JPY nears key 152.00 level with BoJ intervention imminent

• The US dollar continues to rise and is approaching the key level of 152.00.
• The positive US Nonfarm Payrolls report and recent hawkish comments from Fed officials support the Dollar.
• The interest rate differential between the BoJ and the rest of the world's main central banks limits the recovery attempts of the Yen.

During the trading session on Monday, the US Dollar advanced against the Japanese Yen, returning to levels that were a few pips away from the 152.00 point area. This level triggered a BoJ intervention in 2022 and is seen as a line in the sand for Japanese financial authorities.

Strong US macroeconomic data, specifically Friday's Non-Farm Payrolls report, and the recent hawkish tone of the Fed's rhetoric are adding to the negative pressure on the yen.

Markets are reducing hopes for a Fed rate cut in June, while the BoJ is expected to keep its benchmark rate near zero for some time. This makes the yen the preferred currency for financing carry trades, with investors borrowing the yen in search of higher returns elsewhere.

The Japanese authorities have reiterated their willingness to intervene in the market to curb the excessive volatility of the Yen. This is preventing dollar buyers from placing strong long positions in USD, although JPY recovery attempts remain limited above 150.85