USD/JPY nears 13-month high, boosted by Powell’s hawkish remarks, high US yields

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• USD/JPY extends its rally for the fifth day, flirting with the 151.00 level, driven by rising US Treasury yields and Fed Chair Powell’s inflation concerns.
• Market sentiment shifts following the University of Michigan data, indicating lower confidence in the economic outlook and persistent inflation fears.
• Japanese Yen’s further decline is tempered by intervention warnings from the Ministry of Finance, as officials emphasize the need for Forex movements to align with economic fundamentals.

The USD/JPY prolongs its rally to five consecutive days, exchanging hands above the 151.00 figure, shy of challenging the 13-month high reached on October 31 at 151.72. A jump in the 10-year US Treasury bond yield after a weak 30-year US bond auction and Federal Reserve (Fed) Chair Jerome Powell’s hawkish pullback are tailwinds for the major. At the time of writing, the pair trades at 151.50’, posting minimal gains of 0.11%: