USD/JPY Climbs Above 153.50 on Dollar Strength Ahead of FOMC Minutes

USD/JPY has pushed above the 153.50 level during the Asian-to-European session on February 18, driven by broad US dollar strength and anticipation of the FOMC meeting minutes release. The pair's upward momentum reflects ongoing divergence between the Federal Reserve's relatively hawkish stance and the Bank of Japan's gradual approach to policy normalization. Traders are positioning for potential volatility as the FOMC minutes may reveal further details on the Fed's assessment of inflation risks and the timeline for future rate adjustments. The move above 153.50 places the pair in a technically significant zone, with the next resistance level likely near the 154.00 psychological handle. Support is established around 152.80-153.00, which has held on recent pullbacks. Japanese government bond yields remain a key factor, as any shift in BoJ rhetoric around rate hikes could trigger sharp yen appreciation. Near-term, the pair's trajectory hinges on the tone of the FOMC minutes and any surprise in US data. Traders should remain vigilant for intervention warnings from Japanese officials at elevated levels.