USD/JPY: BoJ Rate Hike Strengthens Yen Against Dollar

USD/JPY has declined sharply following the Bank of Japan's unexpected policy adjustment, with the pair trading near critical support levels. The BoJ's hawkish stance marks a significant shift from its ultra-loose monetary policy, boosting yen demand across major pairs. Market participants are reassessing their long dollar/short yen positions as the interest rate differential between the US and Japan narrows. Technical indicators suggest the pair has broken below key moving averages, with immediate support at 155.50 and resistance at 157.00. The double top formation near 157.90 signals potential for further downside, especially if intervention concerns persist. Traders should monitor upcoming Japanese economic data and any verbal intervention from Japanese officials, as these factors could accelerate yen strength and pressure USD/JPY toward the 154.00 psychological level.