USD/JPY Erases Weekly Losses as Yen Reversal Pushes Pair Higher

USD/JPY has moved into positive territory for the week, with the Japanese yen surrendering all of its earlier weekly gains against the US dollar. The reversal highlights renewed dollar strength and diminishing safe-haven demand for the yen, as markets reassess near-term risk dynamics. The pair's recovery suggests that earlier yen buying was likely driven by temporary positioning rather than a sustained shift in fundamentals. The Bank of Japan's cautious stance on monetary policy normalization continues to weigh on the yen, with markets still uncertain about the timing of any further rate adjustments. Meanwhile, the US dollar has found support from resilient economic data and ongoing uncertainty around Federal Reserve rate cut expectations. From a technical perspective, the erasure of weekly gains places USD/JPY back near key resistance levels, and traders will be watching whether bullish momentum can extend further. Near-term direction will likely depend on upcoming US economic releases and any shifts in Fed rate expectations, with risk sentiment also playing a pivotal role.