Core Viewpoint - The USD/JPY exchange rate has reached a new high of 157.48, the highest in over ten months, with expectations that it will maintain a strong trend until there is substantial intervention from Japanese authorities [1] Group 1: Market Dynamics - The market is currently characterized by a strong demand for dollar purchases by Japanese importers and ongoing participation from speculative funds, which limits the extent of any potential pullback in the exchange rate [1] - Analysts indicate that the current market trend is still in a testing phase, with a key resistance level identified around 158.88 [1] Group 2: Monetary Policy Outlook - The market anticipates that both the Bank of Japan and the Federal Reserve will maintain their current policies unchanged during the December meetings, contributing to stable U.S.-Japan bond yields and supporting the upward momentum of the USD/JPY exchange rate [1] - The Japanese government is closely monitoring the foreign exchange market for excessive and disorderly fluctuations, expressing deep concern over recent exchange rate movements [2] Group 3: Government Stance - Japanese Chief Cabinet Secretary Hirokazu Matsuno highlighted the need for stability in the foreign exchange market to reflect economic fundamentals, indicating a high level of vigilance regarding abnormal fluctuations [2] - There is speculation that the Japanese government may tolerate a moderate weakening of the yen to support the profitability of export companies and wage growth, without intentionally guiding the yen to depreciate further [2]