USD/JPY extends upside near 158.50 despite strong Japan’s Tankan Index

• USD/JPY trades in positive territory for the third consecutive day 
• BoJ data suggested an additional $13 billion JPY intervention on Friday. 
• Financial markets see the chance of a Fed rate cut by September at 100%. 

The USD/JPY pair extends gains near 158.40 on the selling pressure around the Japanese currency during the early Asian session on Wednesday. The US Building Permits, Housing Starts, Industrial Production and the Fed Beige Book will be released later on Wednesday, along with the Federal Reserve’s (Fed) Barkin and Waller speeches. e data suggest the possibility of yen-buying interventions worth around 2 trillion yen on Friday,

Data released on Tuesday showed that the Bank of Japan (BoJ) stepped into the foreign exchange market on two consecutive trading days last Thursday and Friday, pushing the Japanese Yen from 162.00 to 157.00 against the USD in just two days.