The USD/JPY exchange rate plummeted on Thursday, hitting a more than one-month low of 155.34 during intraday trading, marking a 2.1% single-day decline. It is currently trading at 155.40. The Chicago Mercantile Exchange (CME) noted that selling pressure is accumulating on options with a strike price of JPY 155. If this level is effectively breached, a dual technical and derivatives-driven pressure could push the dollar further down, potentially accelerating the yen's appreciation. The market generally believes that expectations of a potentially larger-than-anticipated interest rate hike by the Bank of Japan (BOJ), along with statements made by US Treasury Secretary Scott Bessent regarding Japan's policy direction, are the core drivers behind the yen's strengthening.