USD/JPY breaks June high, targets May peak at 148.65

USD/JPY has surged through the June high of 148.019, reaching 148.669 and approaching the critical May peak at 148.647. The pair has gained approximately 65 pips (0.44%) in today's session, driven by renewed dollar strength and widening US-Japan yield differentials. Technical analysis on the 4-hour chart reveals a key swing area between 148.56 and 148.73, which could determine the pair's next directional move. The Bank of Japan's continued ultra-loose monetary policy stance contrasts sharply with the Federal Reserve's hawkish positioning, supporting the bullish momentum. Traders are closely monitoring whether the pair can sustain levels above the May high, which would open the path toward the 149.00 psychological resistance. A failure to hold above 148.50 could trigger profit-taking and a retest of support near 147.80.