USD/JPY rises 0.5% as Japanese political uncertainty weakens yen

USD/JPY has climbed 0.5% to test its 200-hour moving average as ongoing political uncertainty in Japan continues to pressure the yen. The pair's upward momentum reflects growing concerns about Japan's political stability, which is undermining confidence in the currency despite the Bank of Japan's recent policy shifts. Technical indicators show the pair breaking above key resistance levels, with the 200-hour moving average now acting as a critical test for further gains. Market participants are closely monitoring developments in Japanese politics, as any resolution could trigger sharp reversals in yen positioning. The dollar's relative strength is also supported by expectations of sustained higher US interest rates compared to Japan. Traders should watch for a confirmed break above the 200-hour MA, which could open the path toward recent highs, while failure to hold above this level might signal consolidation or a pullback toward immediate support zones.