Yen Strength Drives USD/JPY Lower as 152 Comes Within Reach

The Japanese yen is gaining strength at the start of the week, pushing USD/JPY below 155 and towards 153. This move appears to be driven by expectations that Japan's GPIF will increase its allocation to domestic assets and a more hawkish Bank of Japan policy.

Markets are increasingly focused on these prospects, which is encouraging investors to unwind yen-funded carry trades and rebuild exposure to Japanese assets. From a technical perspective, USD/JPY remains inside a descending channel, with the break below 155 weakening its structure further.

The next meaningful support area for USD/JPY is now at 152, a level that marked an important floor earlier in the year. A decisive break below this could bring 150 into view.