USD/JPY re-enters range after US-Japan trade deal announcement

USD/JPY has moved back into its established trading range following the announcement of a new US-Japan trade agreement, raising questions about the sustainability of this price action. The trade deal news initially sparked volatility in the pair, but prices have since stabilized within familiar technical boundaries that have contained movement in recent weeks. The agreement's details suggest balanced benefits for both economies, limiting any significant directional bias for the currency pair. Technical analysis shows the pair settling between key support and resistance levels that have defined the recent consolidation phase. The US Dollar Index's reaction has been muted, indicating the trade deal's impact may be more symbolic than immediately market-moving. Traders are now watching whether the pair can maintain its position within the range or if subsequent developments will provide the catalyst for a breakout. Critical levels include range support and resistance, with any breach potentially signaling the next trending move.