USD/JPY breaks higher as BOJ maintains ultra-dovish stance on rates

USD/JPY has spiked 0.9% (135 pips) to 156.35 after Bank of Japan Governor Ueda reiterated that interest rate increases would only materialize if economic conditions and inflation projections align with forecasts. This conditional approach contrasts sharply with other major central banks' more hawkish stances, accelerating yen selling across the board. The governor's comments suggest the BOJ remains far from normalizing policy despite persistent inflation above target. Market positioning data shows speculative short yen positions increasing to multi-month highs. Immediate resistance lies at 156.50, coinciding with the April high, while support has shifted to 155.00. The widening interest rate differential between Japan and other major economies continues to pressure the yen, with traders now eyeing the 157.00 psychological level as the next major target if dollar strength persists.