USD/JPY Tests Intervention Zone as Fed Hawkishness Drives Yen Weakness

USD/JPY has surged to critical levels near 155.00, gaining 0.8% (120 pips) in early Asian trading as the Federal Reserve's hawkish stance continues to pressure the yen. The pair approaches the psychological intervention threshold where Japanese authorities previously acted in April and September. Fed Chair Powell's recent comments suggesting fewer rate cuts in 2025 have bolstered dollar strength, while the Bank of Japan maintains its ultra-loose monetary policy despite inflation concerns. The policy divergence between the two central banks has widened to its largest gap since 2022. Technical indicators show USD/JPY testing resistance at 155.20, with momentum oscillators in overbought territory. Japanese Finance Minister warnings about excessive yen weakness have increased, raising intervention risks. Traders should monitor verbal interventions from Japanese officials and any sudden volatility spikes that could signal official action in the currency markets.