What is JPY? The reason why the USD/JPY currency pair cannot break through the 153.90-154.34 range

The USD/JPY currency pair is currently at a critical technical turning point as of February 2026. It has been unable to break above the range of 153.90 to 154.34, leading to increased tension among market participants. As the Wall Street Journal also points out, understanding what JPY is and why this currency pair is attracting attention is important in this highly volatile environment.

Basics of the Yen (JPY) and Its Role in the Foreign Exchange Market

JPY stands for Japanese Yen, Japan’s official currency. As one of the major global currencies, it has a significant presence in the international foreign exchange market. The yen reflects the health of the Japanese economy and reacts sensitively to changes in interest rates and economic growth. The USD/JPY pair indicates the exchange rate between the US dollar and the Japanese yen, making it one of the most liquid currency pairs for global investors.

The Core of the Current Range Challenge — Technical Challenges

The reason USD/JPY is struggling to break above the 153.90–154.34 range involves multiple factors. From a technical analysis perspective, this range acts as a strong resistance zone, where buying and selling pressures are balanced. Market participants are cautious about adjusting their positions unless there is sufficient momentum to break through this range.

Bank of Japan’s Monetary Policy Influences Volatility

Understanding the fluctuations in the yen requires paying attention to the Bank of Japan (BOJ)’s policy decisions. Changes in interest rates and inflation policies directly impact USD/JPY movements. The stance the BOJ takes can alter the yen’s relative strength, potentially triggering a breakout from the current range. The market is closely watching the central bank’s next actions, as these decisions are key drivers of price movements.

Economic Indicators and Geopolitical Risks Intersect

Economic indicators such as inflation rates and unemployment figures further complicate USD/JPY volatility. The relative strength of the US and Japanese economies influences the direction of the currency pair. Additionally, geopolitical tensions and unexpected economic news can cause dramatic market fluctuations. Traders constantly monitor these risk factors and time their position adjustments accordingly.

Investor Strategies — Waiting for a Breakout

The current USD/JPY market is at a pivotal moment for many investors. If the pair breaks above the 153.90–154.34 range, a rapid move toward the next target levels is expected. Conversely, if it remains within the range, a continued cautious mood may prevail. Market participants are basing their assessments of the yen and dollar’s relative value on the BOJ’s policy stance and upcoming US economic data releases.