USD/JPY surges as yen faces renewed selling pressure

The USD/JPY pair has experienced a sharp upward movement, propelled by a fresh wave of selling in the Japanese yen. The yen's weakness comes amidst a backdrop of widening yield differentials between the United States and Japan, as the Bank of Japan maintains its ultra-loose monetary policy stance. This divergence in monetary policy continues to favor the US dollar over the yen. Technical analysis indicates that USD/JPY has broken above key resistance levels, which could pave the way for further gains in the near term. Traders should monitor any potential comments from Japanese officials expressing concern about the rapid pace of yen depreciation, as this could temporarily limit USD/JPY's upside momentum. However, the overall trend remains bullish for the pair, with the US dollar likely to maintain its strength against the yen as long as the current fundamental drivers persist.