USD/JPY jumps 109 pips as robust US economy fuels dollar strength

USD/JPY surged 109 pips to 143.78, marking a full cent gain as strong US economic data reinforced dollar bullishness. The pair's sharp rally reflects growing confidence in US economic resilience, with recent data pointing to sustained growth momentum that could keep the Federal Reserve hawkish. Market participants are reassessing rate differential expectations between the Fed and Bank of Japan, with the BoJ maintaining its ultra-loose monetary policy stance. Technical indicators show USD/JPY breaking above key resistance at 143.00, opening the path toward 144.50. The 142.70 level now acts as immediate support. Traders should monitor upcoming US employment and inflation data, which could further accelerate the pair's upward trajectory. The widening yield differential between US Treasuries and JGBs continues to support USD/JPY appreciation, with the 10-year spread remaining near multi-month highs.