Anna 
During the early European session on Wednesday, USD/JPY traded around 154.60, hovering near its peak at 154.78, a level not seen since June 1990. While a downward correction in the US Dollar (USD) applied pressure on the pair, expectations of the Federal Reserve (Fed) maintaining elevated interest rates countered this trend.
Federal Reserve Chair Jerome Powell’s remarks on Tuesday at the Washington Forum may have bolstered the greenback. Powell’s acknowledgment of limited progress on inflation this year, suggesting a prolonged period before reaching the 2% target, possibly contributed to a more hawkish stance and provided support to the USD.
Meanwhile, the Japanese Yen (JPY) found support from Japan’s trade balance swinging to a surplus in March, indicating improved economic conditions. Additionally, sentiment among manufacturers softened in April due to a weaker Yen driving up import expenses, which could further support the JPY.
Furthermore, safe-haven inflows into the JPY, prompted by risk aversion amid geopolitical tensions, may contribute to its strength. Investors are closely monitoring Israel’s response to Iran’s recent air strike, which could impact market sentiment.
Traders are eagerly awaiting the release of Japan’s National Consumer Price Index (CPI) data by the Statistics Bureau of Japan on Friday. Market expectations suggest a moderation in Consumer Prices in March, which could influence further movements in the USD/JPY pair.
