The yen has weakened again and hit a new low in recent times. Japanese officials have spoken out intensively, and they are paying attention to the remarks of Federal Reserve officials this evening

Daocheng Technology Financial News -Dollar indexOn Wednesday (May 8), it resumed its upward trend, edging higher after falling earlier due to renewed bets by the Federal Reserve to cut interest rates this year, while the yen weakened again.USD/JPYRising above 155 again, the risk of Japanese intervention remains high. Kazuo Ueda, governor of the Bank of Japan, said monetary policy did not seek to control the exchange rate. He warned that due toforeign exchangeThe impact, which may require a policy response, will be closely watched for recent currency fluctuations. Shunichi Suzuki, Japan's finance minister, said he would closely monitor currency fluctuations with a sense of urgency.

(Daily chart of USD/JPY)

The dollar hit a high of 155.18 against the yen on Wednesday, a four-session high, up about 0.32 percent, away from a nearly four-week low of 151.86 set last week by Japanese authorities suspected of intervening to stop the yen's depreciation.

Analysts said any intervention by Japan would only provide a temporary respite for the yen, given the still wide spread between US and Japanese interest rates.

Bank of Japan governor Kazuo Ueda said on Wednesday that the central bank could take monetary policy action if the yen's movements had a significant impact on inflation, and further warned of the economic impact of the yen's recent sharp depreciation. Shunichi Suzuki, Japan's finance minister, warned again that the Japanese authorities were ready to respondforeign exchange marketExcessive volatility.

"Monetary policy is designed to affect inflation, not the yen exchange rate, and the impact of yen movements on the economy will be studied," Mr. Ueda said. "Foreign exchange fluctuations can have a significant impact on the economy and prices, so the impact of foreign exchange fluctuations may be greater than in the past."

He continued: "The Bank of Japan does not seek to control the exchange rate directly through monetary policy. Foreign exchange movements are one of many factors affecting the economy and prices. A weak yen drives up the cost of imports and affects the economy in other ways, such as through demand. Adjust the easing policy according to the trend of rising prices."

"If the movement of the yen influences trend inflation, the BoJ may need to respond through monetary policy," Mr. Ueda said. "We expect trend inflation to gradually move towards 2 per cent. If trend inflation approaches 2 per cent as we forecast, or if we see the risk of inflation exceeding our forecasts, we will adjust monetary policy as appropriate."

Shunichi Suzuki said he would take all necessary measures to prevent yen weakness. "Observe foreign exchange movements with a sense of urgency and will not comment on foreign exchange levels. Rapid movements in foreign exchange are not advisable. It is very important that currencies move in a stable way that reflects fundamentals. There will be a thorough response to foreign exchange."

"If we see a big jump in the dollar/yen exchange rate all of a sudden, then I would expect them to come in and support the yen," said Carol Kong, a currency strategist at the Commonwealth Bank of Australia. "But if we continue to see gradual gains, I doubt they will step in, but there are clearly risks."

The dollar index continued its gains, hitting a three-session high of 105.53 at one point, some distance from last week's low of about a month.

Investors continue to watch the pace and timing of the Federal Reserve's rate cuts, which could move the exchange rate, with the latest US non-farm payrolls data coming in weaker than expected and the Fed's easing bias cementing expectations of a possible rate cut before the end of the year.

Minneapolis Fed President Kashkari said on Tuesday that it was too early to declare that progress against inflation had definitely stalled, with little impact on market expectations of a rate cut.

Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, said "the market has lightly dismissed comments by Minneapolis Fed President Kashkari, who is a hawk and not a voting commissioner this year".

In the short-term outlook, the near-term trend of the USD/JPY depends on Japanese wage growth and household spending data, as well as Federal Reserve rhetoric. Lower-than-expected data from Japan could cause the Bank of Japan to hold its ground, leading to a shift in monetary policy divergence towards the dollar. However, FOMC members' remarks will affect buyers' interest in the USD/JPY.

Analysts pointed out that the dollar/yen remained above the 50- and 200-day moving averages, confirming the bullish price signal. If the dollar/yen can stand at the 155 mark, it may send the bulls to the 158 mark.