USD/JPY: Is the U.S. Dollar Resilient Enough to Break the Yen?US Dollar/Japanese YenFX:USDJPYAegis-MarketUSD/JPY is expected to remain supported with an upward or range-bound bias over the coming week, as yield differentials and carry dynamics continue to favor the U.S. dollar despite an increasingly complex macro backdrop. Recent U.S. data from Q1 has reinforced a narrative of relative resilience, with stable growth and still elevated inflation limiting the pace at which the Federal Reserve can transition into aggressive easing, thereby sustaining higher U.S. yields. In contrast, the Bank of Japan remains in a gradual normalization phase, with policy rates still significantly below global peers, preserving a wide interest rate differential that underpins demand for USD/JPY through carry trade flows. From a geopolitical perspective, the current environment in early May 2026 is characterized by elevated but not crisis-level uncertainty, which has limited the extent of safe haven inflows into the yen while still supporting the U.S. dollar as the primary global liquidity asset. Institutional commentary from major banks such as JPMorgan Chase and Goldman Sachs continues to highlight the structural weakness of the yen due to persistent yield disadvantages, while acknowledging that the pair remains vulnerable to episodic downside corrections in the event of a sharp deterioration in global risk sentiment. In this context, USD/JPY is likely to remain bid on dips over the next week, with upside supported by carry demand, while downside risks remain conditional on any sudden shift toward a more pronounced risk-off environment or a rapid repricing of Federal Reserve expectations.