USDJPY is compressing inside a symmetrical triangle after a strong bullish leg, with higher lows building pressure against descending resistance, signaling a likely breakout continuation toward 161.50–162.50.
Fundamentally, the Fed remains firm on higher rates due to persistent inflation while the Bank of Japan continues ultra-loose policy despite recent adjustments, keeping yield divergence in favor of USD strength.
At the same time, stable risk sentiment and reduced safe haven demand are weakening JPY flows, allowing buyers to maintain control as liquidity builds above the current range.
Overall, I am watching for a clean breakout above triangle resistance as accumulation and momentum structure suggest an impulsive bullish expansion is approaching.