USD/JPY surges to 8-month high ahead of FOMC minutes release

USD/JPY has climbed to its highest level in eight months, driven by robust dollar demand and persistent yen weakness ahead of today's FOMC minutes release. The pair's rally reflects growing divergence between Fed and Bank of Japan monetary policies, with markets pricing in a more hawkish Fed stance while the BOJ maintains its ultra-loose policy framework. Technical momentum remains firmly bullish, with the pair breaking through multiple resistance levels without significant pullbacks. The upcoming FOMC minutes could provide additional fuel for the rally if they reveal hawkish deliberations among committee members. Key resistance now sits at the psychological 150.00 level, while support has formed at 148.50. Currency strategists note that USD/JPY's strength aligns with rising US Treasury yields and widening interest rate differentials. A hawkish surprise in the FOMC minutes could propel the pair toward 151.00.