USD/JPY breaks 147.50 resistance on sustained bullish momentum

USD/JPY has surged to 147.50, achieving a two-week high following persistent buying pressure throughout July. The pair has gained 1.2% (175 pips) since the month's opening, driven by widening US-Japan yield differentials and dollar strength. The 10-year Treasury-JGB spread expanded to 365 basis points, near yearly highs, supporting the dollar's appeal. Technical momentum indicators confirm the bullish trend, with RSI reaching 68 and the pair trading above all major moving averages. July's steady accumulation pattern suggests institutional positioning ahead of potential Federal Reserve hawkishness and continued Bank of Japan accommodation. Key resistance emerges at 148.00, a psychological level that coincides with the 61.8% Fibonacci retracement of the May-June decline. Support levels stand at 147.00 and 146.50. The sustained buying interest indicates market confidence in further upside, particularly if US economic data continues to outperform Japanese metrics.