Pair floated right at the ¥150.50 mark early Tuesday ahead of an eventful week with Jerome Powell testifying before US officials.
- Key Points: Dollar holds firm above the intervention level of ¥150.00.
- Jerome Powell to testify on Capitol Hill on Wednesday.
- Japan is likely to shift easy policy in the second quarter.
- The
USDJPY pair has been range bound between ¥150.00 and ¥150.90 for the past few days as FX traders were slow to move. The exchange rate is above the intervention level of ¥150.00, meaning that Japan officials may decide to step in and bolster the yen at any moment. - With that in mind, the dollar is looking to get volatile on Wednesday when Federal Reserve chief Jerome Powell gives a testimony on Capitol Hill. Markets expect the top central banker to lay out a timeline of potential interest-rate cuts in his speech before Republicans and Democrats.
- The US dollar, in the meantime, is floating near its three-month high against the weaker yen. From Japan, policymakers are slowly raising the pace of talks over moving away from ultra-loose monetary policies. Analysts anticipate the first steps to materialize in the second quarter of this year.
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