USD/JPY trapped in range as traders await catalyst for breakout

USD/JPY continues to trade within a well-defined range, showing limited directional momentum as market participants await fresh catalysts. The pair remains constrained between key technical levels, with neither bulls nor bears able to establish clear control. Recent price action suggests consolidation following previous volatility, with traders monitoring both US economic data releases and Bank of Japan policy signals. The yen's traditional safe-haven appeal is being balanced against dollar strength, creating a technical standoff. Market analysts note that current range-bound conditions may not persist indefinitely, with building pressure likely to result in an eventual breakout. Key support and resistance levels are being closely watched, as a decisive move beyond these boundaries could trigger accelerated momentum. Traders should prepare for potential volatility once the pair breaks free from its current trading range, with direction dependent on upcoming fundamental catalysts.