USD/JPY approaches key resistance as sentiment shifts near 156.00

USD/JPY has advanced 0.4% to 155.85, approaching the critical 156.00 resistance level as market sentiment shifts in favor of the dollar against the yen. The pair's upward momentum reflects diverging monetary policy expectations, with the Federal Reserve maintaining a hawkish bias while the Bank of Japan continues its ultra-accommodative stance despite recent policy adjustments. Technical analysis reveals the pair testing the upper boundary of its recent trading range, with RSI indicators approaching overbought territory above 70. Immediate resistance stands at 156.00-156.20, a break above which could accelerate gains toward 157.00. Support levels are positioned at 155.50 and 155.00. The move correlates with broader risk-on sentiment in equity markets, with the S&P 500 up 0.8% and Nasdaq gaining 1.1%. Traders remain cautious of potential BOJ intervention above 156.00, though recent official comments suggest tolerance for current levels amid improving economic conditions.