USD/JPY Rebounds as BOJ's Ueda Signals Cautious Rate Approach

USD/JPY has staged a recovery to 152.80, gaining 0.4% (60 pips) following Bank of Japan Governor Ueda's dovish press conference remarks. Ueda stated there is "no clear prescription" for dealing with the challenges of raising interest rates, dampening expectations for aggressive policy normalization. The yen's weakness was exacerbated by the contrast with the Federal Reserve's hawkish stance, widening the US-Japan yield differential. Markets had anticipated a more definitive timeline for BOJ policy adjustments, but Ueda's cautious tone suggests the ultra-loose monetary policy will persist longer than expected. Technical indicators show USD/JPY bouncing from support at 152.20, with immediate resistance at 153.20 (weekly high). The pair's positive momentum shift indicates potential for a retest of the 154.00 psychological level if US yields continue rising. Traders should monitor upcoming Japanese inflation data for further policy clues.