The USDJPY pair has extended the gains above the 156.00 handle following Japan Finance Minister Katayama’s remarks earlier in the session here. Her comments put further downward pressure on the JPY as BoJ rate hike hopes continue to dwindle.
The market is still pricing a 25% probability for a December cut, but that’s unlikely to happen unless we get very strong Japanese data or the JPY continues to fall quickly. For now, the USDJPY pair remains skewed to the upside.
Zooming out to the daily chart, there’s not much in the way until the January high around the 158.87 level. Something that could pause or even reverse the momentum could be an actual intervention or weak US data.