USD/JPY surges as risk appetite returns to forex markets

USD/JPY has climbed 0.8% to 155.20 as improved risk sentiment drives flows out of the safe-haven yen. The term 'TACOs' (Tariff-Accelerated Currency Opportunities) reflects renewed trader optimism following clarity on US trade policies. AUD/USD simultaneously gained 0.6% to 0.6280, benefiting from the risk-on environment and commodity currency strength. Technical indicators show USD/JPY breaking above the 155.00 resistance level, with momentum indicators turning bullish. The next target sits at 156.00, coinciding with December highs. Japanese officials remain vigilant about excessive yen weakness, though intervention risks appear limited near current levels. S&P 500 futures up 1.2% and Nasdaq futures gaining 1.5% confirm the broader risk-on tone. Traders should monitor the 154.50 level as new support, while a sustained break above 156.00 could accelerate the upward move toward 157.00 psychological resistance.