Yen weaken further as a tough stance from TakaichiUS Dollar/Japanese YenFX:USDJPYWiseLeoTradingJapan inflation has cooled from around 3–3.5% in 2024 to roughly 2% or slightly below by early 2026, bringing it close to the BoJ’s target and reducing urgency for rapid rate hikes.With the policy rate at about 0.75% and real wages still soft, the BoJ is signaling a slower, data‑dependent path toward roughly 1% rather than an aggressive tightening cycle.Prime Minister Sanae Takaichi emphasizes inflation sustained near 2% and driven by wage gains, pushing for gradual, wage‑linked normalization and shaping BoJ board appointments to favor a cautious rate path.As a result, the yen might continue to face pressure, but the risk of intervention still persists if the yen weakens to near 159-160.Technically, Higher swings and widening bullish EMAs point to a possible continuation of the USDJPY uptrend.A clean break above 156.20 would pave the way for a move toward the next resistance around 157.20.Failure to clear 156.20 and sustained trading below it could trigger a pullback toward support near 155.20 By Van Ha Trinh - Financial Market Strategist at Exness.