USD/JPY consolidates at key support as buyers defend bullish structure

USD/JPY is experiencing a consolidation phase after recent gains, with buyers actively defending crucial support levels to maintain the pair's bullish technical structure. The pair's price action shows resilience at key support zones, indicating strong underlying demand despite minor profit-taking activities. The persistent strength reflects continued divergence between Federal Reserve and Bank of Japan monetary policies, with interest rate differentials remaining favorable for USD longs. Technical indicators suggest the current consolidation is healthy, allowing overbought conditions to ease while maintaining the broader uptrend intact. Key support has been established at recent lows, with multiple successful tests confirming buyer interest at these levels. A sustained break above recent consolidation highs could trigger fresh momentum buying, potentially targeting new multi-month highs. Traders are advised to watch for any shifts in BOJ rhetoric or unexpected yen intervention risks, though current market dynamics favor continued USD/JPY strength in the medium term.