USD/JPY: Weak Yen Persists Amid BoJ Hesitation and Carry Flows

USD/JPY continues its ascent toward 157.00 as the yen remains under pressure from the Bank of Japan's cautious approach to policy normalization. Despite verbal intervention attempts from Japanese officials, the pair has gained 2.5% month-to-date, driven by attractive carry trade dynamics with US-Japan rate differentials exceeding 4.5%. S&P 500 futures holding near record highs signal risk-on sentiment supporting carry trades, while crude oil's rise above $79/barrel adds inflationary pressure weighing on the yen. The BoJ's reluctance to aggressively hike rates, citing wage growth uncertainties, contrasts sharply with the Fed's higher-for-longer stance. Technical analysis shows strong momentum with RSI approaching overbought territory at 68. Key resistance lies at 157.50 (2024 high), while support forms at 155.80. Traders should monitor BoJ Governor Ueda's upcoming speeches for any hawkish shifts that could trigger rapid yen appreciation.