USD/JPY Tests 155.85 Resistance, Eyes Break Toward 156.20

USD/JPY advanced 0.4% to 155.85 during Asian trading, testing a key resistance level as dollar strength and yen weakness converge. The pair has gained over 250 pips from last week's 153.30 low, driven by widening US-Japan yield differentials with the 10-year spread expanding to 365 basis points. Technical momentum remains bullish, with the pair trading above all major moving averages and RSI at 68, approaching overbought territory. A decisive break above 155.85 would open the path to 156.20, the November peak, while failure to clear resistance could trigger a pullback to 155.00 support. Bank of Japan officials have remained notably quiet despite the yen's weakness, suggesting tolerance for current levels ahead of next week's policy meeting. Market positioning data shows speculative shorts in yen remain elevated, indicating potential for further USD/JPY gains if US economic data continues to support dollar strength.