USD/JPY revisited its session high of 157.255 on Monday, driven by higher U.S. Treasury yields following a firm 2-year note auction. Risk-on sentiment from climbing U.S. tech shares further supported the pair, along with broader yen weakness across crosses. With traders keeping an eye on potential verbal intervention from Japan’s MOF near the 158 level, key resistance lies at 158.45, the April 26 high, which will likely act as a psychological barrier.

Technically, USD/JPY remains bullish but faces resistance near current levels. The pair is hovering just above the weekly Ichimoku cloud top at 157.13, with support levels below at 155.97 (December 20 low) and 155, the pivotal psychological level. A close above 158.45 would signal a continuation of the uptrend, while a failure to hold above 157.13 could bring 155.97 back into focus. The relatively narrow range highlights near-term consolidation as traders await further cues.

Upcoming BOJ events will shape USD/JPY’s trajectory. Key releases include the minutes of the BOJ’s October meeting, Governor Ueda’s remarks, and Tokyo CPI data later in the week. A hawkish tone or robust inflation data could strengthen the yen and cap USD/JPY gains. However, dovish signals from the BOJ or weaker-than-expected data may push USD/JPY toward 158, with any moves beyond that level likely to invite intervention concerns. For now, the pair’s direction hinges on the balance between global risk appetite and Japan-specific monetary policy signals.