USD/JPY Rises on Japanese Capital Outflows; ECB Leadership Debate Weighs on EUR

USD/JPY continues its upward trajectory as Japanese capital flows increasingly move stateside, reinforcing dollar-yen upside momentum. Institutional and portfolio capital from Japan is seeking higher-yielding US assets, driven by the persistent interest rate differential between the Federal Reserve and the Bank of Japan. This capital outflow dynamic is a structural tailwind for USD/JPY, keeping the pair elevated above 153.00. Meanwhile, in Europe, the ongoing debate over the next ECB president is creating uncertainty around the eurozone's monetary policy direction, weighing modestly on EUR/USD. The NZD/USD pair and the US Dollar Index are also in focus as the broader greenback benefits from both yield advantage and safe-haven demand. The interplay between Japanese outflows and Fed policy expectations suggests USD/JPY could test higher resistance levels near 154.00-154.50 in the near term. However, traders should remain cautious of potential BoJ intervention risk and shifts in rhetoric. Support remains firm around 152.50-153.00. Cross-pair dynamics, particularly EUR/JPY, may also see increased volatility as ECB leadership uncertainty develops further.