USD/JPY under pressure as Bessent urges immediate BOJ rate hikes

USD/JPY faces continued selling pressure after US Treasury Secretary Scott Bessent publicly criticized the Bank of Japan's monetary policy stance, explicitly calling for immediate rate hikes. The unprecedented intervention by a US Treasury Secretary in Japanese monetary affairs has triggered sharp yen appreciation, with USD/JPY testing multi-week lows. Markets interpret Bessent's comments as reflecting Trump administration's desire for a stronger yen to address bilateral trade issues. The remarks have increased speculation about accelerated BOJ policy normalization, potentially ending Japan's negative interest rate policy sooner than anticipated. Technical analysis shows USD/JPY breaking below crucial support levels, with momentum indicators signaling further downside potential toward 145.00. The development marks a significant shift in US-Japan monetary dynamics, with traders now closely monitoring BOJ officials' response and any policy guidance adjustments.