Rising US interest rates continue to put upward pressure on the USD/JPY. 

Concerns about currency intervention by the Japanese authorities have kept the USD/JPY from becoming entrenched at the psychologically significant 150 mark, but this level looks likely to be reached following the closely watched BoJ monetary policy meeting.

The BoJ revised its interest rate control policy again, essentially dismantling YCC. We see this as a stepping stone toward policy normalization, but BoJ failed to covey its true intentions to the foreign exchange market. 

We expect Yen sellers will remain reassured until the next policy meeting in December, meaning the USD/JPY could rise further.