USD/JPY Rally Extends: When Will Yen Find Support Amid BoJ Inaction?

USD/JPY has extended its rally to 154.90, gaining 0.5% as the Japanese yen continues to weaken against major currencies amid Bank of Japan policy paralysis. The pair has risen 8% over the past two months, with the yen's decline accelerating despite verbal interventions from Japanese officials. EUR/USD trades lower at 1.0575, while GBP/USD holds near 1.2640, and AUD/USD retreats to 0.6480 as broad dollar strength persists. Technical analysis reveals USD/JPY approaching critical resistance at 155.00, a level that previously triggered intervention concerns. The 200-day moving average at 151.20 now acts as major support. Market participants anticipate potential BoJ intervention if the pair breaches 155.50, though sustained moves above 156.00 could trigger accelerated yen selling. The widening US-Japan yield differential, with the 10-year spread at 380 basis points, continues to underpin the pair's uptrend despite growing intervention risks.