• USD/JPY rallies to over 159 as US Dollar gains on hawkish Fedspeak and weakening Yen. 
• Slide in Japanese underlying inflation suggests BoJ will not be able to raise rates much to support JPY.  
• USD/JPY reenters intervention territory increasing chances authorities could intervene to push it lower. 

USD/JPY continues its relentless climb, reaching the 159s on Friday – only one big figure away from the April highs of 160.32, where the Japanese authorities finally stepped in to prevent a further depreciation of their currency. 

The pair is rallying off the back of a strengthening US Dollar (USD) due to rising US Treasury yields, as Federal Reserve (Fed) officials continue to spout hawkish commentary, playing down any market eagerness to see them cut interest rates any time soon. 

USD/JPY gets further support from a weakening Japanese Yen (JPY), after the release of Japanese inflation data for May showed a fall in core inflation, and what gains there were, were mostly put down to rises in energy prices.