USD/JPY trades near 158 amid a wide US-Japan policy rate gap, with the Fed at 3.75-4.00% following its September hike and the Bank of Japan at 1.25% after its own September move. Hawkish Fed pricing, including roughly 70% odds of an October 28 increase, and elevated US Treasury yields above 5.2% continue to underpin dollar demand, while BoJ normalization proceeds gradually with limited October hike odds. Recent Tokyo core inflation data exceeding the 2% target and coordinated verbal intervention from US and Japanese officials have capped upside near 160, creating a trading range of roughly 155-160 through year-end. Key near-term catalysts include the US CPI release, NFP data, and FOMC decision, which will shape market-implied rate paths and yen sentiment.