Ella 
The direction of USD/JPY was unclear on Thursday, with the Asian market fluctuating within a narrow range just below the one-week high of 151.00 hit the previous day. Currently, USD/JPY appears to have broken off its three-game winning streak.
Investors remain skeptical that Japanese authorities may intervene in FX markets to stem further losses in the currency, which in turn is seen as a key headwind for USD/JPY. In addition, a slight fall in the U.S. dollar, driven by a further decline in U.S. bond yields, is also weighing on USD/JPY. However, the downside of the JPY/USD exchange rate remains restrained due to huge differences in monetary policy stances between the Bank of Japan (BoJ) and the Federal Reserve (Fed).
Bank of Japan Governor Kazuo Ueda said early this week that Japan was making progress in achieving its 2% inflation target, but it was not enough to end ultra-loose policies. Kazuo Ueda also stressed that the prospects for small businesses to raise wages next year were unclear. Kazuo Ueda added on Wednesday that wages and inflation would need to rise in tandem before the Bank of Japan would consider unwinding its decade-long easing policy. In contrast, recent speeches by several Fed officials suggest that the Fed may not be done raising interest rates yet.
Meanwhile, USD/JPY was little changed after the Bank of Japan released its Summary of Opinions earlier this Thursday. Even the latest Chinese consumer inflation data did not provide significant boost to USD/JPY. Markets are now looking forward to a speech by Federal Reserve Chairman Jerome Powell for clues on next policy moves. In addition, U.S. bond yields will also affect U.S. dollar price dynamics, allowing traders to seize short-term USD/JPY trading opportunities.
