USD/JPY Extends Rally Above 157.50 as Yen Safe-Haven Status Fades

USD/JPY has continued its upward trajectory, climbing 0.6% to trade above 157.50 as the Japanese yen loses its traditional safe-haven appeal amid improving global risk sentiment. The pair has gained over 250 pips this week, supported by widening US-Japan yield differentials with the 10-year spread expanding to 365 basis points. Market participants are increasingly dismissive of Bank of Japan intervention risks, despite verbal warnings from Japanese officials about excessive currency moves. Technical analysis shows the pair breaking above the 157.00 psychological resistance, with momentum indicators suggesting further upside potential toward 158.50. The yen's weakness extends across the board, with EUR/JPY and GBP/JPY also posting significant gains. Traders should monitor any shift in risk sentiment or unexpected BoJ actions that could trigger sharp reversals. The next major resistance lies at 158.00, coinciding with the May 2024 high.