USD/JPY Extends Rally as Yen Weakens; Traders Eye Resistance

USD/JPY continues its sustained climb, with the pair extending gains as the Japanese yen remains under persistent selling pressure against the US dollar. The rally reflects a widening interest rate differential between the Federal Reserve's relatively hawkish stance and the Bank of Japan's accommodative monetary policy, which continues to weigh heavily on the yen. Safe-haven flows into the dollar amid US-Iran geopolitical tensions have further accelerated the pair's upward trajectory. Market participants are increasingly questioning whether there is a ceiling to this move, with traders watching for potential verbal or actual intervention from Japanese authorities, who have historically stepped in during periods of rapid yen depreciation. Technical momentum remains firmly bullish, though the extended rally raises the risk of a corrective pullback or consolidation phase. Traders should remain vigilant for any shifts in BOJ rhetoric or intervention signals, as these could trigger sharp reversals. Near-term price action will also hinge on upcoming US economic data and evolving risk sentiment.