USD/JPY is approaching multi-decade highs driven by the BoJ’s reluctance to tighten policy amid persistent geopolitical tensions involving the US and Iran. The ongoing conflict keeps inflation risks elevated, supporting the dollar’s strength while undermining the yen. Market expectations place the next BoJ rate hike no earlier than December, maintaining downward pressure on JPY. Technically, USD/JPY shows bullish momentum with ascending triangle patterns on shorter timeframes, but key resistance near 162.85 could trigger profit-taking. Traders should monitor US jobless claims, Japanese CPI, and US PMIs for fresh directional cues amid geopolitical headlines.