USD/JPY faces pressure as BoJ policy speculation intensifies

USD/JPY momentum has stalled as market attention shifts to potential Bank of Japan policy adjustments, creating uncertainty for the currency pair. The dollar's recent advance against the yen has lost steam amid speculation that the BoJ might signal a shift away from its ultra-loose monetary policy stance. Japanese officials have hinted at reviewing yield curve control measures, sparking yen buying interest and capping USD/JPY gains. The pair faces a critical juncture as traders weigh diverging monetary policies between the Fed and BoJ. Technical indicators suggest waning bullish momentum for USD/JPY, with the pair struggling to maintain gains above key resistance levels. Market positioning data shows reduced long dollar positions against the yen, reflecting growing caution. Traders await the next BoJ meeting for clarity on policy direction, which could trigger significant volatility in USD/JPY. Near-term support lies at 147.50, while resistance emerges at 149.00.