USD/JPY stabilizes at 146.20 after sharp rally; consolidation expected

USD/JPY has stabilized around 146.20 levels after a notable leap earlier in the session, with other major USD pairs also finding equilibrium. The yen's weakness reflects ongoing divergence between Bank of Japan's ultra-dovish stance and expectations for sustained Fed hawkishness. The pair's surge above 146.00 represents a significant technical breakout, though momentum has temporarily stalled as traders digest the move. Market participants remain cautious about potential intervention risks from Japanese authorities if yen weakness accelerates too rapidly. The consolidation phase suggests the market is awaiting fresh catalysts, with US GDP and PCE data likely to provide directional clarity. Technical analysis shows immediate resistance at 146.50, while support has formed at 145.80. The broader trend remains USD-positive, though near-term price action may remain range-bound between these levels as volatility subsides.