Dollar/Yen Rises 0.50% to 156.58

The dollar's push past 156.58 underscores how rate differentials remain the dominant driver in dollar/yen, with the yen's fragility persisting as long as the Bank of Japan's policy stance lags the Fed's. This move matters for carry-trade positioning and import costs in Japan, but the real test is whether momentum holds ahead of central bank signals. The key watch is whether intervention risk re-emerges as the pair climbs, or if market participants accept a higher equilibrium. For now, the trend favors dollar strength, but any shift in rate expectations could trigger sharp reversals, making the pair's sensitivity to policy headlines the focal point.