USD/JPY edges higher as Japan's leading index improves to 104.8

USD/JPY has gained 0.15% to trade at 156.85 following the release of Japan's revised leading indicator index for May, which improved to 104.8 from 104.2 previously. The coincident index remained steady at 116.0, maintaining its assessment as 'halting to fall,' suggesting stabilization in Japan's economic conditions. The modest improvement in forward-looking indicators has reduced immediate pressure on the Bank of Japan to implement additional stimulus measures. Market participants are closely monitoring the yen's weakness, as USD/JPY approaches the psychologically important 157.00 level. Technical resistance sits at 157.20, while support has formed at 156.50. The data suggests Japan's economy may be finding a floor, though the yen remains under pressure from the significant interest rate differential between the US and Japan, with traders awaiting further economic releases for directional clarity.