USD/JPY jumps as BoJ's Ueda dampens rate hike expectations

USD/JPY has rallied sharply following Bank of Japan Governor Ueda's press conference, with the yen weakening across the board as immediate rate hike expectations diminished. The pair gained 0.8% to reach session highs near 153.50, reversing earlier losses after the BoJ maintained its ultra-loose policy stance. While inflation projections were revised higher, Ueda's cautious tone suggested the central bank remains in no rush to normalize policy, disappointing yen bulls who had positioned for a more hawkish shift. US futures maintained their positive momentum throughout the European session, adding to dollar strength. Technical indicators show USD/JPY breaking above the 153.00 resistance level, with next targets at 154.20 (July high). The divergence between Fed and BoJ policy paths continues to favor USD/JPY upside, though traders remain watchful for potential intervention risks above 155.00.