USD/JPY targets fresh highs amid dollar strength and yen weakness

USD/JPY has surged 0.5% to 149.85, approaching the psychological 150.00 level as the dollar strengthens on robust US economic fundamentals while the yen remains under pressure from the Bank of Japan's ultra-loose monetary policy. The US Dollar Index has climbed 0.3% to 106.20, supported by expectations of sustained Federal Reserve hawkishness amid persistent inflation concerns. Japanese officials have increased verbal interventions, warning against excessive yen weakness, though markets remain skeptical of actual intervention below 150.00. Technical indicators show strong bullish momentum, with the RSI approaching overbought territory at 68. Immediate resistance lies at 150.00, with a break potentially opening the path to 151.50 (October 2023 high). Support levels are established at 149.20 (previous week's high) and 148.50 (20-day moving average). Traders should monitor any shift in BoJ rhetoric or surprise intervention risks.