USD/JPY Bulls Dominate as Rising Yields and BoJ Policy Weaken Yen

USD/JPY maintains its bullish momentum above 157.00, supported by elevated US Treasury yields and the Bank of Japan's persistently dovish monetary policy stance. The pair has gained approximately 2.5% since the start of 2025, with the 10-year US Treasury yield holding firm above 4.5%, widening the rate differential between the US and Japan. The BoJ's reluctance to accelerate policy normalization continues to pressure the yen, despite verbal interventions from Japanese officials warning against excessive currency weakness. Technical indicators suggest strong bullish structure with immediate resistance at 158.20 (recent highs) and support established at 156.40 (50-day moving average). The US Dollar Index remains elevated near 108.50, adding further strength to the greenback. Traders should monitor upcoming US economic data and any potential shift in BoJ rhetoric, as sustained moves above 158.00 could trigger renewed intervention concerns from Japanese authorities.