This relates to their meeting last week here: BOJ governor Ueda says had regular information exchange with Japan prime minister Takaichi
It was a short and quick meeting, with it lasting for less than 20 minutes at the time. Yet, it's still enough for Takaichi to voice her concerns with Ueda on the matter. However, this view was not expressed at the time last week by both parties following the meeting.
The report by the Mainichi Shimbun says that multiple sources have revealed that Takaichi conveyed her reluctance towards Ueda on the matter of the BOJ proceeding with further rate hikes. As such, this now puts the central bank in a spot where it has to "be forced to make a difficult decision given its relationship with the prime minister".
The headline sees USD/JPY catch a bid with the pair now climbing up to 155.80-90 levels with buyers eyeing the 156.00 mark. It's a solid bump up as buyers look to try and shake off the 155.00 mark for good, having been plagued by the figure level in dragging down price action before the daily close since last week.
A firm break here also solidifies a push above the 100-day moving average of 154.98. And that will allow buyers to gather more momentum for a renewed push up.
That being said, just be wary that any notable moves above the 155.00 barrier is likely to draw the wrath of Japan's finance ministry. Intervention risks are heightened and will remain a key factor in limiting any gains in USD/JPY still for now.
