USD/JPY eyes 160 level amid persistent yen weakness and political risks

USD/JPY continues its ascent toward the psychologically significant 160 level, trading at 159.45 with a 0.6% intraday gain. The Japanese yen remains under pressure from widening interest rate differentials between the US and Japan, with the Bank of Japan maintaining its ultra-loose monetary policy despite inflation concerns. Political uncertainties in Japan are amplifying yen weakness, as investors question the government's ability to implement structural reforms. The US Dollar Index has strengthened to 106.8, providing additional support for the pair. Technical analysis shows strong momentum with the RSI approaching overbought territory at 68. Key resistance lies at 160.00, a level that previously triggered verbal intervention from Japanese officials. Support is established at 158.80. Traders should remain vigilant for potential BOJ intervention if the pair breaches 160, though sustained yen weakness suggests further upside potential.