USD/JPY Stalls Around 159.00 as Japanese Yen's Underperformance Persists

The USD/JPY pair is currently trading in a narrow band just above the 159.00 mark, awaiting a fresh catalyst to determine its next move.

The fundamental backdrop seems tilted in favor of bulls, suggesting that the path of least resistance for spot prices is to the upside.

The Japanese Yen's relative underperformance continues due to concerns over Japan's worsening fiscal condition, surging long-term interest rates, and a massive national debt burden.

Additionally, interest rates in Japan remain significantly lower than those in other major economies, keeping the so-called JPY carry trade active.