USD/JPY rises, highlighting yen’s vulnerability to the Federal Reserve’s interest rate path

```htmlCommonwealth Bank of Australia strategist Carol Kong: The recent rise in USD/JPY highlights that the yen is still largely constrained by changes in the Federal Reserve’s interest rate path. Even if the Bank of Japan speeds up rate hikes, it is still difficult to outpace the Federal Reserve in terms of hawkishness. If the exchange rate quickly breaks through the critical 160 level, Tokyo will sound the alarm. It is almost certain that Japanese officials will soon issue stronger warnings about yen depreciation.```