USD/JPY edges higher as US removes AI regulations, trade pact impact limited

USD/JPY has gained 0.2% to trade at 154.85 during Asian trading, supported by the White House announcement to remove restrictive AI development regulations. The policy shift aims to boost US technology sector competitiveness, potentially strengthening dollar flows into tech investments. Meanwhile, the yen found only limited support from a new regional trade agreement, as investors remain focused on the Bank of Japan's ultra-loose monetary policy stance. The pair broke above the 154.50 resistance level, with momentum indicators suggesting further upside potential. Technical analysis shows immediate resistance at 155.20 (monthly high), while support sits at 154.30 (previous day's low). Traders are closely monitoring upcoming US GDP data and any signals from the BoJ regarding potential policy normalization, which could significantly impact the pair's trajectory in coming sessions.