USD/JPY Bullish Trend Faces Uncertainty Amid Carry Unwind Concerns

The USD/JPY currency pair has been exhibiting a bullish trend in the short-term charts since the past two weeks, with higher highs and lows. However, the longer-term picture is more uncertain due to questions about where the next line-in-the-sand might be.

Last week's bounce from the 155.00 handle around FOMC and BoJ rate decisions was strong, but the pair's larger facet of carry unwind remains a concern, with fundamental convergence between the two economies not appearing nearby.

The past two weeks have seen support delivered from the five-year trendline in the pair. The weekly chart shows a clear change of pace since Scott Bessent and the Japanese Finance Ministry intervened almost two months ago.