USD/JPY recovers fully from Tuesday's decline, yen weakness persists

USD/JPY has staged a complete recovery from yesterday's losses, climbing to session highs as yen weakness continues to dominate trading. The pair's rebound suggests strong underlying dollar demand and persistent concerns about Japan's ultra-loose monetary policy stance. Technical momentum appears bullish with the pair erasing Tuesday's entire decline, indicating buyers are defending key support levels aggressively. The move higher reflects broader risk-on sentiment in markets and ongoing divergence between Federal Reserve and Bank of Japan policy expectations. Immediate resistance lies at recent highs, while yesterday's low now acts as near-term support. The swift recovery demonstrates limited downside appetite for USD/JPY, with traders viewing dips as buying opportunities. Further yen weakness could accelerate if upcoming US economic data supports Fed hawkishness, potentially pushing the pair toward psychological resistance levels.