USD/JPY recently surged towards levels not seen since 1986, driven by speculative positioning and concerns over Japanese stealth intervention. Despite a temporary pullback, the pair remains supported above 160.50, with the Bank of Japan’s cautious tightening stance underpinning the yen's vulnerability. The US dollar faces a wait-and-see environment ahead of the US CPI release, which could either reinforce the dollar’s strength or prompt a correction. Traders should monitor the FOMC minutes and jobless claims for further clues on Fed policy trajectory, as these will impact USD/JPY momentum and potential breakouts beyond current resistance around 162.00.