USD/JPY stabilizes at 154.50 as markets recalibrate Fed-BoJ divergence

USD/JPY consolidated around 154.50, recovering from earlier lows as traders reassess central bank policy divergence following the Fed's decision to hold rates steady. The pair gained 0.3% after the US Senate approved measures to avoid a government shutdown, removing immediate fiscal uncertainty. Markets are repricing expectations for both Fed and Bank of Japan policies, with the BoJ potentially moving toward normalization while the Fed maintains its hawkish stance. Technical indicators suggest USD/JPY has established support at 154.00, with resistance at 155.20. The 200-day moving average at 153.80 provides additional downside protection. Traders are positioning for continued volatility as both central banks navigate complex economic conditions. Near-term direction depends on upcoming Japanese inflation data and US employment figures, with the pair likely to remain range-bound between 153.50-155.50.