USD/JPY Tests Range Top as Dollar Rebounds - Breakout Imminent?

USD/JPY has been oscillating within a well-defined trading range for the past two weeks, with the pair currently testing the upper boundary amid renewed dollar strength. The pair has gained approximately 0.5% (75 pips) in recent sessions, approaching key resistance levels that have capped advances since mid-August. The dollar's rebound reflects improving risk sentiment and expectations of sustained Federal Reserve hawkishness, while the Bank of Japan maintains its ultra-accommodative stance. Technical indicators suggest building momentum, with the RSI approaching overbought territory and moving averages converging for a potential bullish signal. Immediate resistance lies at the range top near 147.50, with a confirmed break potentially targeting 148.80. Support remains firm at 146.00, the range floor. Traders are closely monitoring whether this consolidation phase will resolve with a decisive breakout, particularly ahead of upcoming US economic releases that could provide the catalyst for directional movement.