Ella 
In early Asian trading on Tuesday, the USD/JPY exchange rate remained above the psychological mark of 150.00. USD/JPY is higher on the day as demand for the U.S. dollar revives. Meanwhile, the U.S. dollar index, which tracks six major currencies to measure the greenback’s value, rebounded to 104.35. USD/JPY is currently trading around 150.32, up 0.12% on the day.
With inflation above its 2% target for a year, the Bank of Japan (BoJ) has said it will end its negative interest rate policy in the coming months. Bank of Japan Governor Kazuo Ueda said on Friday that when the price target is expected to be continuously and stably achieved, the central bank will study whether to maintain various easing measures, including negative interest rates.
USD/JPY upside may be limited due to verbal intervention from Japanese authorities. Japanese Finance Minister Shunichi Suzuki said that although a weak yen has pros and cons, he is more worried about the negative impact of a weak yen.
On the other hand, Federal Reserve Chairman Powell pushed back on expectations of a rate cut, with investors expecting the first 25 basis points (bps) rate cut in 2024 as early as June. Given recent signs that inflationary pressures are stubborn, Wednesday’s Fed meeting minutes may provide some hints about further monetary policy.
Next up, Japan’s trade balance will be released ahead of Wednesday’s FOMC meeting minutes. Traders will also be watching for speeches from Fed officials Bostic and Bowman. Japan’s preliminary February Jibun Bank Purchasing Managers’ Index will be released on Thursday.
