USDJPY is gaining traction at 149.70 due to USD demand.

During the early Asian session on Monday, the USDJPY pair is trading at 149.70. Following the announcement of the Bank of Japan’s (BoJ) Summary of Opinions, the pair is trading at its highest level in 11 months, having risen from a low of 148.52. Meanwhile, the US Dollar Index (DXY) is trading over 106.00. notwithstanding the increasing demand.

The Governor of the Bank of Japan stated that the central bank has a long way to go before ending its ultra-loose monetary policy.

On Saturday, Bank of Japan Governor Kazuo Ueda stated that the Bank of Japan still has “a long way to go” before ending its ultra-easy monetary policy. Earlier Monday, the BoJ Summary of Opinions at the Monetary Policy Meeting on September 21 and 22 indicated that the BOJ does not need to make more changes to YCC since long-term rates are rising fairly steadily and that the end of negative rates must be related to the achievement of the 2% inflation objective. One board member said that, given recent currency and oil price movements, there is a possibility

The annual Core PCE Price Index in the United States increased 3.9% from 4.3% in July, in line with predictions.

Furthermore, according to the most recent statistics from the Bank of Japan, the general business conditions of Japan’s big manufacturing enterprises improved in the third quarter (Q3). The Tankan Large Manufacturing Index (Q3) in Japan came in at 9.0, up from 5.0 in the previous reading, and better than the expected 6.0.

Across the pond, Federal Reserve (Fed) Bank of New York President John Williams stated on Friday that the central bank is at or nearing the top for the federal funds rate, implying that the Fed would need to maintain a restrictive policy stance for some time to achieve its objectives. Traders will be looking for indications from Federal Reserve Chair Jerome Powell’s address later in the American session on Monday.

USDJPY Investors will be watching the US ISM Manufacturing PMI as well as Fed Chair Powell’s speech.

In terms of statistics, the US Bureau of Economic Analysis stated on Friday that the Personal Consumption Expenditures (PCE) Price Index increased 3.5% year on year in August, up from 3.4% the previous month, in line with market expectations. The Core PCE Price Index increased year on year. 3.9%, down from 4.3% in July, is in line with expectations. The PCE Price Index and the Core PCE Price Index increased by 0.4% and 0.1% month on month, respectively. Both of these results were lower than expected by the market.

In the lack of high-quality economic data from Japan this week, the USDJPY pair is at the mercy of USD price dynamics. However, as the pair trades towards the 150.00 barrier, traders will be wary of potential FX intervention from Japanese authorities. In addition, the September ISM Manufacturing PMI for the United States will be released on Monday, ahead of Fed Chair Powell’s address.