Ella 
In the Asian market on Friday, after the Bank of Japan announced its policy decision, the US dollar regained positive momentum per day, and bullish sentiment accelerated. USD/JPY was last seen climbing back above the 148.00 mark and is trading near its highest level of the year hit on Thursday.
The Bank of Japan decided to maintain its monetary policy mechanism unchanged, in line with market expectations, and did not mention forward guidance. This is a sharp departure from the Fed’s hawkish outlook, which continues to support the greenback and serves as a tailwind for USD/JPY. The Fed said it is likely to raise interest rates at least one more time by the end of the year, with updated forecasts showing interest rates will tighten sharply by 2024 than previously expected.
That, along with an unexpected drop in weekly U.S. jobless claims, pushed the rate-sensitive two-year U.S. government bond yield to a 17-year high. Additionally, the 10-year U.S. Treasury yield climbed to its highest since November 2007, continuing to support the dollar. That said, the prospect of Japanese government intervention in FX markets may dissuade bulls from making bullish bets on USD/JPY.
In fact, a Japanese government spokesman issued a new warning on Thursday about the recent weakness of the yen and said that Japan would not rule out introducing measures to deal with excessive currency market volatility. Investors may also prefer to stay on the sidelines and watch to see whether comments from Bank of Japan Governor Kazuo Ueda change his dovish stance.
