DAX futures rally while USD/JPY targets 157 on risk-on sentiment

USD/JPY has surged 0.8% to 156.45, approaching the psychologically important 157.00 level as risk appetite improves alongside equity market strength. The DAX futures contract has jumped 1.2% to 21,350, reflecting broad European equity optimism following positive earnings reports and easing geopolitical tensions. The yen's weakness accelerated after Bank of Japan officials signaled no immediate plans for policy normalization, maintaining ultra-loose monetary conditions. Technical analysis shows USD/JPY breaking above the 156.00 resistance with strong momentum indicators, targeting 157.00-157.50 zone. The DAX has cleared the 21,200 resistance level, with the next target at 21,500. Correlation analysis suggests continued equity strength could further pressure the yen as carry trades return to favor. Traders should monitor the 155.80 support on USD/JPY for any pullback opportunities.