USD/JPY surges above 162.00 on trade tensions and yen weakness

USD/JPY has rallied 0.6% to 162.35, reaching fresh multi-month highs as growing US-China trade tensions and Japan's struggling currency dynamics drive the pair higher. The yen's traditional safe-haven appeal has diminished amid escalating trade disputes, with markets focusing on potential tariff implementations. Japanese officials have expressed concern about the rapid yen depreciation, with Finance Minister suggesting intervention remains an option if movements become excessive. The Bank of Japan's ultra-dovish stance continues to weigh on the yen, maintaining negative interest rates while other major central banks remain restrictive. Technical analysis shows USD/JPY breaking above the key 162.00 psychological level with momentum indicators signaling overbought conditions. Immediate resistance lies at 162.80, while support has formed at 161.50. Traders remain vigilant for potential BOJ intervention, which could trigger sharp reversals from current levels.