USD/JPY Slams Into 156.13/50 Wall as Fed-BoJ Gap Widens
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USD/JPY has pushed directly into the 156.13/50 resistance band, a level that now defines the pair's near-term direction after the Fed's rate hike widened the yield gap in the dollar's favor.
The BoJ is expected to lift rates to 1.25%, but that alone may not be enough to reverse yen weakness unless Governor Ueda explicitly signals further tightening ahead. Markets are watching Japan CPI closely for confirmation of that path.
Bearish RSI divergence on the daily chart flags reversal risk. A break below 155.45 would trigger fresh downside momentum, making it the pivotal level for traders positioned around this resistance test.