USD/JPY seems to surpass the 151.50 on US Dollar strength

• USD/JPY receives upward support on hawkish remarks by the Fed Powell.
• Japanese authorities may intervene in the FX market to provide support for the JPY.
• BoJ Governor Ueda mentioned that the central bank will approach the exit from ultra-loose monetary policy.

USD/JPY continues the winning streak for the fifth consecutive day, trading higher around 151.40 during the early European session on Friday. Federal Reserve (Fed) Chair Jerome Powell’s unexpected hawkish remarks had a notable impact, boosting US Treasury yields and strengthening the US Dollar (USD) against the Japanese Yen (JPY). However, Japanese authorities may consider intervention to curb the advance of the USD/JPY pair in response to these developments.

Fed Chair Powell's statement at the International Monetary Fund (IMF) event on Thursday, expressed concern that current policies may not be sufficient to curb inflation. This sentiment resulted in a surge in the US Dollar Index (DXY), hovering around 106.00, with the 10-year US bond yield standing at 4.62% by the press time.

Despite the aggressive tightening policies from major central banks, the Bank of Japan (BoJ) is maintaining its dovish stance. BoJ Governor Kazuo Ueda stated on Thursday that the central bank will approach the exit from ultra-loose monetary policy cautiously to prevent substantial volatility in the bond market.

However, the Japanese Yen continues to face pressure as plans to exit the ultra-loose policy stance may be delayed due to lower wage growth. Decent wage growth is seen as a crucial factor for the Japanese central bank to consider exiting from the prolonged easy monetary policy.

Market participants keep a close eye on the Fed's Logan speech and the preliminary Michigan Consumer Sentiment Index for November, as traders seek cues to identify trading opportunities within the USD/JPY pair.