USD/JPY Consolidates at 156.50 as Buyers Defend Support Levels

USD/JPY remains range-bound around 156.50, showing limited directional momentum as buyers continue defending key support zones. The pair has traded in a tight 40-pip range during the Asian session, with support at 156.20 proving resilient against selling pressure. Technical indicators suggest a neutral bias, with the 50-day moving average at 156.35 providing immediate support, while resistance caps gains at 156.80. Market participants remain cautious ahead of Friday's Bank of Japan policy meeting, where officials may signal concerns about yen weakness. The lack of clear direction reflects broader market indecision, with traders balancing US yield advantages against potential Japanese intervention risks. A decisive break below 156.20 could trigger stops toward 155.50, while clearing 156.80 resistance would target the 157.50 recent highs. Volatility remains subdued at 6.5%, suggesting consolidation may persist.