USD/JPY Maintains Bullish Trend as Volatility Exceeds 90-Day Average

USD/JPY continues its bullish momentum with elevated volatility running above its 90-day average, signaling increased market participation and potential for larger price swings. The pair has maintained its upward technical structure, with buyers defending key support levels despite the heightened volatility environment. This increased volatility suggests growing divergence between Federal Reserve and Bank of Japan monetary policies, with the Fed's hawkish stance contrasting sharply with the BoJ's ultra-accommodative approach. Technical indicators point to sustained bullish pressure, though traders should note that volatility above historical averages often precedes significant market moves or reversals. Key resistance levels to watch include recent highs, while support has formed at previous breakout points. The elevated volatility environment offers both opportunities and risks, requiring careful position sizing and risk management as the pair navigates this high-activity phase.