The USD/JPY exchange rate has dropped to 157 since the start of the year, hitting its lowest level since January 9, according to ChainCatcher's market data. The Japanese yen strengthened notably, driving the currency pair down 0.86% within a single trading session. This decline reflects shifting market sentiment around the dollar-yen dynamics, with traders reassessing positions following recent economic indicators and central bank signals. Since mid-January, the pair has shown increased volatility as investors recalibrate their forex exposure in response to diverging monetary policy expectations between the Federal Reserve and the Bank of Japan.