USD/JPY hovers below 150.00 as US Dollar stabilizes post recent gains

• USD/JPY consolidates below the 150.00 on stable US Dollar after recent gains.
• Japanese Prime Minister Kishida refrained from influencing the JPY through verbal intervention.
• Upbeat US PMI data supported the US Dollar to rebound from the monthly low.

USD/JPY moves sideways around 149.80 during the Asian session on Wednesday. The pair faces a minor challenge as the US Dollar (USD) consolidates after recent gains.

The government is facing increasing political pressure to intervene and safeguard Japanese households from the rising inflation. The Bank of Japan's (BoJ) actions, coupled with the USD/JPY nearing a potential breach of the 150 mark, may not create the impression that the government is exhaustively addressing the inflation challenge.

In a TV interview on Tuesday, Japanese Prime Minister Fumio Kishida refrained from attempting to influence the USD/JPY pair through verbal intervention. When questioned about the Japanese Yen's recent decline to approximately 150.00 against the US dollar, he responded in broad terms, indicating that the determination of specific monetary policy measures falls under the purview of the BoJ.

Kishida emphasized a mutual commitment to pursuing economic growth, structural wage increases, and stable inflation. Furthermore, he affirmed that the government is prepared to implement measures aimed at permanently lifting Japan out of deflation.

The US Dollar Index (DXY) staged a recovery from monthly lows, stabilizing around 106.20, driven by favorable preliminary S&P Global PMI figures released on Tuesday.

However, the diminishing US Treasury yields, standing at 4.82% for the 10-year yield, could apply downward pressure on the US Dollar (USD).

In October, the US S&P Global Composite PMI demonstrated growth, ascending from 50.2 to 51.0. The Services PMI witnessed an uptick, reaching 50.9, while the Manufacturing PMI increased to 50.0. The manufacturing index has consistently held above the 50-point threshold for the past six months, signaling a positive trend in that sector.

Investors are anticipated to closely track the US Q3 Gross Domestic Product (GDP) on Thursday, with additional focus on the US Core Personal Consumption Expenditures (PCE) and Japan’s Tokyo Consumer Price Index (CPI) data scheduled for Friday.