USD/JPY Consolidates at 147.50 as Volatility Spikes Higher

USD/JPY has entered a consolidation phase around 147.50, displaying increased volatility as markets balance conflicting fundamental forces. The pair has traded in a 100-pip range between 147.00-148.00 over the past 48 hours, reflecting uncertainty about both Federal Reserve and Bank of Japan monetary policies. Implied volatility measures have jumped to three-month highs, suggesting traders expect significant price swings ahead. The yen found support from safe-haven flows amid global growth concerns, while the dollar benefited from elevated US Treasury yields, with the 10-year reaching 4.25%. Technical indicators show the pair in equilibrium, with the RSI at neutral 50 and price action respecting both the 50-day (147.80) and 200-day (146.20) moving averages. Key resistance lies at 148.50, while support at 146.50 has proven durable. Traders should prepare for potential breakout scenarios, particularly around upcoming US employment data and any unexpected BOJ policy communications.