Ella 
In early Asian trading on Thursday, USD/JPY strengthened for the fourth consecutive day to around 155.60. However, concerns about further intervention by the Bank of Japan (BoJ) may limit the downside for the yen for the time being.
Bank of Japan board members decided to keep the key interest rate steady at 0% at the April monetary policy meeting. Board members turned hawkish at the April policy meeting, with many policymakers calling for keeping interest rates steady to avoid the risk of inflation overshooting, according to the Bank of Japan’s (BoJ) Summary of Opinions. The statement emphasized that recent remarks by Bank of Japan Governor Kazuo Ueda indicate that multiple interest rate hikes may be introduced in the coming months, and short-term borrowing rates may also be raised.
Earlier on Wednesday, Japan’s top foreign exchange official Makoto Kanda intervened verbally, saying he would take appropriate action to prevent the yen from rising if necessary. However, Kanda declined to comment on foreign exchange intervention. Japanese authorities may take further steps to prevent their currency from appreciating, which could boost the yen and limit USD/JPY upside.
On the other hand, the monetary policy gap between the United States and Japan continues to support USD/JPY. Meanwhile, Boston Fed President Susan Collins said on Wednesday that interest rates are likely to remain higher for longer as it will take longer than previously thought to bring inflation down to target. . Hawkish comments from Federal Reserve officials boosted the dollar, boosting USD/JPY. In addition, traders will also focus on Friday’s preliminary reading of the University of Michigan’s consumer confidence index, which is expected to fall to 76.0 in May from 77.2 in April.
