USD/JPY Consolidation Eyed Near 155 as BoJ Bets Mature

MarketPulse analysis suggests the yen's rally potential is fading as markets have already absorbed the bulk of anticipated Bank of Japan tightening. That leaves USD/JPY gravitating toward consolidation near the 155 handle rather than extending a clean directional trend.

Weak domestic consumption in Japan is cited as a key constraint, limiting the BoJ's room to hike aggressively even as inflation pressures persist. Without stronger household spending, policymakers have less justification for a faster tightening path.

A breakout from this zone likely requires an external trigger — either a surprise BoJ policy shift or fresh flows tied to Japan's GPIF reallocating assets. Until then, USD/JPY may trade in a tighter band, with participants fading extremes near 155.