USD/JPY Surges to 9-Month High on US Shutdown Resolution Optimism

USD/JPY rallied 0.8% to 154.75, marking a nine-month high as risk appetite improved on reports of progress toward resolving the US government shutdown. The yen weakened broadly as traders reduced safe-haven positions, with the currency falling against all major peers. US lawmakers appear close to reaching a funding agreement, alleviating concerns about economic disruption and supporting risk-sensitive currencies. The dollar's strength was further bolstered by expectations that a resolution would maintain government operations and economic momentum. Technical indicators suggest USD/JPY has broken above key resistance at 154.50, opening the path toward 155.00 psychological level. The pair faces immediate support at 154.30 (previous resistance turned support). Market participants are monitoring any headlines from Washington for confirmation of the shutdown resolution, which could trigger additional yen selling if finalized.