USD/JPY Breaks Key Resistance, Bulls Target 160+ Long-Term Highs

USD/JPY has broken through significant resistance levels, with bulls now eyeing the psychologically important 160 mark and potentially higher long-term targets. The pair's strength reflects continued dollar dominance amid expectations of sustained higher US interest rates, while the Bank of Japan maintains its ultra-loose monetary policy stance. The widening interest rate differential between the US and Japan continues to support the pair's upward trajectory. Technical indicators suggest strong bullish momentum, with the breakout confirming a continuation of the established uptrend. Key support has formed at previous resistance levels around 157.50-158.00, while immediate targets include 160.00 followed by multi-decade highs above this level. Traders should monitor any potential intervention warnings from Japanese authorities, as extreme yen weakness could prompt verbal or direct market intervention, though the fundamental backdrop remains supportive for further USD/JPY gains.