USD/JPY bulls target 160 as technical breakout gains momentum

USD/JPY has broken above key resistance levels, positioning bulls for a potential run toward the psychologically important 160 level ahead of US CPI data. The pair surged 0.8% to 157.85, clearing the 157.50 resistance that had capped gains since early December. Technical indicators show strong bullish momentum, with RSI at 68 and MACD signaling continued upside. The breakout comes amid diverging monetary policy expectations, with the Fed maintaining a hawkish stance while the Bank of Japan remains ultra-accommodative despite recent speculation about policy normalization. Immediate support now sits at 157.20 (former resistance), with stronger backing at 156.50. A decisive break above 158.00 would confirm the bullish continuation pattern, potentially accelerating gains toward 160.00. However, traders should watch for potential BOJ intervention warnings as the pair approaches multi-decade highs.