USD/JPY Faces Conflicting Signals Amid Market Cross-Currents

USD/JPY is experiencing heightened volatility as divergent market signals create uncertainty for traders. The pair has oscillated between 155.20 and 156.80 as conflicting forces from US equity strength, led by NVIDIA and S&P 500 gains, clash with traditional safe-haven yen demand. Current price action at 156.00 reflects this market indecision, with technical indicators showing mixed signals. The Bank of Japan's potential policy shift remains a key factor, while Fed rate cut speculation adds complexity to the pair's outlook. Support has formed at 155.50, coinciding with the 50-day moving average, while resistance at 156.80 caps upside attempts. Traders should monitor correlation with US equity indices, as any sharp correction in tech stocks could trigger rapid yen appreciation. Near-term direction likely depends on resolution of these cross-currents.