Last week, the BOJ raised interest rates to their highest level in 31 years. And yet now, we're seeing USD/JPY still trading just above the 157 level from around 156 before the decision.I reckon that alone should tell us quite a lot about where the pressure in this currency pair is coming from.While the BOJ did lift its policy rate to 1.25%, the move failed to generate sustained yen demand. Markets were already well expecting the central bank to deliver a rate hike, so the onus was on the statement language and governor Ueda to follow up on a more hawkish path. Instead, neither delivered as markets were unable to gather any sense of urgency that the BOJ would be stepping up the pace of their policy tightening.Meanwhile, the Fed has moved in the opposite direction in delivering a more hawkish rate hike at the margin. While it did help to temper the mood among bond vigilantes, 10-year Treasury yields continue to keep near 5% still. And that remains a big pressure point for USD/JPY, with the dollar staying underpinned.Circling back to USD/JPY, price action keeping above 157 this week is leaving traders continuing to watch for another round of intervention. And Japan's market holidays have made the situation even more interesting.Lower liquidity means relatively modest flows can create disproportionately large moves, and Japanese authorities know that very well. Back during 4 May and 6 May, Japan's ministry of finance bought yen during the Golden Week holiday as part of its ¥11.7 trillion of intervention between late April and May.Despite the intervention at the time, USD/JPY still made its way back up to near 164 from around 155 after the move. So, it is again important to be reminded of the fact that intervention does not automatically change the macro story.As long as US yields remain near 5%, Fed expectations remain hawkish and the BOJ communicates a relatively gradual approach to tightening, traders still have a sizeable rate incentive to hold USD/JPY longs.At this juncture, I would argue that intervention has become more of a volatility question than a straightforward bearish USD/JPY signal.A sudden 200 or 300 pips drive lower in USD/JPY can happen very quickly. But whether or not it sticks is another matter.From a technical standpoint, there's not much indication that we are seeing the USD/JPY rebound extend too far or too fast since last Friday.The upside momentum is still relatively limited on the daily chart, with the 61.8 Fib retracement level of the swing lower in early September at around 157.52 still keeping a lid on things. After that, the 200-day moving average (blue line) will be next in line at around 158.41 currently.There is still some scope for the technicals to slow the advance for the time being, and traders seem to be respecting that. So while intervention risks remain heightened on the final day of the Japanese market holiday, the appetite for it may not be too large at this juncture.And so, the attention will then turn to see how USD/JPY behaves once Japanese markets fully reopen.If the pair can continue pressing higher despite the BOJ rate hike and repeated intervention warnings, it would underline just how dominant the US rates story remains.But around these levels, traders also need to respect the possibility that one intervention headline can completely change the intraday picture. I reckon the 160 level, as highlighted by MUFG earlier this week, could be where Japanese authorities decide to draw the line again even on a less inviting and slow grind higher. This article was written by Justin Low at investinglive.com.