Today, the USD/JPY pair is heavily influenced by the monetary policy of the Bank of Japan (BoJ). Although the current interest rate of the BoJ is 0.25%, the BoJ is expected to consider raising it to 1.0% by the end of 2025 if inflation and the economy improve.
However, for now, the BoJ maintains a cautious stance due to global and domestic economic uncertainties. Japan's economy may continue to grow with increased consumption and wages, but it still faces the challenge of deflation. The USD/JPY exchange rate is currently rising slightly due to the significant interest rate differential between Japan and the US.
On the 4-hour chart, the USD/JPY pair is in an uptrend. The nearest support level is 156.50; if the price falls below this level, a slight correction may occur, but the overall trend remains bullish unless there are major changes from the BoJ or global factors.
If the USD/JPY rate stays above the 156.50 support level, this could present a buying opportunity, with the target approaching the nearest resistance level at 157.67. If this level is broken, the pair could continue toward the next target of 158.00 or even 160.00.