Nov 12 (Reuters) - Federal Reserve hike bets leave USD/JPY poised to test 160 and 161, despite concerns from Japan.

The dollar has risen to a 19-month high as bets on a Fed rate hike have grown and meanwhile the yen is under pressure.

USD/JPY closed up 108 pips on Wednesday, its biggest one-day rise since September. It registered a daily close above the 159.75 Fibonacci level, a 61.8% retracement of the 163.99 to 152.89 (July to September) EBS fall, which is a bullish technical development.

USD/JPY has climbed further on Thursday from 159.49 to 159.94, with the scope growing for eventual gains through the 160 and 161 psychological levels.

As USD/JPY nears 160, Japan's top currency diplomat Atsushi Mimura warned that markets should not forget the risk of intervention.

However, the yen has been kept under pressure as dovish Bank of Japan policymaker Toichiro Asada pushed back against calls for an early rate hike.

Seasonality may also favour the yen's weakness. EUR/JPY usually rises in November and the daily chart hints at a repeat.
Daily Chart

(USD/JPY Martin Miller is a Reuters market analyst. The views expressed are his own)