USD/JPY Builds Upward Momentum Ahead of 150.00 Resistance

The USD/JPY pair closed at 150.33, with an intraday high of 150.62 and a low of 150.34. It has extended its rebound, piercing through short-term resistance levels as buyers regain control. The move highlights renewed US dollar strength against the yen, with momentum shifting upward.

Key Technical Observations

• Moving Averages Turning Bullish: The 15-day moving average (148.37) has crossed above the 20-day moving average (148.09), confirming short-term bullish alignment. Both averages are beginning to slope upward, reinforcing the improving trend tone.
• Trend Structure: After a prolonged sideways phase between 145.00 and 149.00, the pair has broken higher, testing the key 150.00 psychological barrier. A daily close above this level could mark the beginning of a stronger bullish leg toward 152.00.
• RSI Positive but Near Overbought: The RSI sits at 62.90, showing strong bullish momentum but not yet overbought. This suggests there’s room for additional upside before a potential pullback.
• Resistance Retest: Price is re-approaching the 150.50–151.00 zone, which capped gains earlier this year. Sustained closes above 151.00 would confirm bullish continuation.

Macro & Market Context

• Yield Differential Support: US Treasury yields remain elevated relative to Japanese government bonds, maintaining carry trade appeal for the pair.
• BoJ’s Dovish Bias: The Bank of Japan continues to prioritize financial stability and gradual policy normalization, limiting yen upside potential.
• Dollar Rebound (DXY Link): The mild bounce in DXY adds to upward pressure on the pair, though broader USD strength remains limited.

Key Levels to Watch

• Immediate Resistance: 150.60–151.00 – key breakout zone.
• Next Resistance: 152.00 – major multi-month high.
• Immediate Support: 148.50 – moving average support cluster.
• Deeper Support: 147.00 – lower bound of prior consolidation.

Bias: Bullish

Momentum and structure favour further gains toward 151.00–152.00, especially if DXY holds firm. However, overbought conditions may trigger short-term consolidation before continuation.

The outlook favours buying dips above 148.50, targeting 151.00–152.00 with stops below 147.50. Be cautious of rejection near the 150.60–151.00 resistance area — a failure there could invite short-term profit-taking before the next rally attempt.