USD/JPY strengthens above 156.50 as BoJ’s cautious tightening weighs on Japanese Yen

The USD/JPY pair has risen to near 156.75 during the early Asian session on Monday, influenced by the market's disappointment with the slow pace of the Bank of Japan's (BoJ) monetary tightening. This has led to a softening of the Japanese Yen against the US Dollar. The USD maintains a strong basis, contributing to the upward trend in USD/JPY. As the pair has broken above 156.50, there is potential for further upward movement. Technically, the 156.50 level remains crucial as either support or resistance. Market focus will stay on how the BoJ adjusts interest rates moving forward, but currently, there is a visible bullish sentiment. Traders need to exercise caution and carefully strategize in this volatile environment.