USD/JPY Tests Critical 151.00 as February Highs Come Into Focus

USD/JPY has surged to test key February highs near 151.00, marking a 0.6% gain in early Asian trading as dollar strength persists against the yen. The pair's advance reflects widening US-Japan yield differentials, with 10-year Treasury yields holding above 4.5% while Japanese Government Bonds remain near 0.9%. Bank of Japan's continued ultra-loose monetary policy stance contrasts sharply with the Federal Reserve's higher-for-longer narrative. Technical analysis shows the pair facing immediate resistance at 151.20 (February peak), with a break potentially opening the path to 152.00. Support has formed at 150.30 (previous week's high) and stronger backing at 149.50 (20-day moving average). RSI indicators approaching overbought territory at 68 suggest potential consolidation ahead. Traders should watch for any verbal intervention from Japanese officials, as the rapid yen depreciation raises concerns about imported inflation pressures.