USD/JPY Drops Below 143.60 on Positive Bank of Japan Tankan Data

USD/JPY declined sharply to trade below 143.60, falling approximately 0.4% (55 pips) following the release of better-than-expected Bank of Japan Tankan survey results. The quarterly business sentiment index showed improvement across key metrics, reinforcing expectations for potential BOJ policy normalization. Large manufacturers' sentiment index likely exceeded forecasts, suggesting Japanese economic resilience despite global headwinds. The yen's strength reflects growing market confidence in Japan's economic recovery and speculation about future BOJ policy adjustments. Technical indicators show USD/JPY breaking below the key 143.60 support level, with next support at 143.00 psychological level. Immediate resistance now sits at 144.00. The dollar's weakness extends its recent decline, pressured by shifting interest rate differentials and risk sentiment. Traders are positioning for potential further yen appreciation if BOJ signals any hawkish shift in upcoming policy meetings.