USD/JPY eyes breakout above key resistance as upward momentum builds
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The USD/JPY pair is showing signs of sustained bullish momentum, with a reasonable possibility of breaching the significant resistance zone between 150.60 and 151.45 if it remains above the 148.40 level. Recent price action has confirmed a bullish divergence, with the daily MACD (Moving Average Convergence Divergence) indicator crossing into positive territory, signaling increasing upward momentum.
Technically, the pair has recovered from recent lows, with early indications of a potential crossover in weekly stochastics from oversold territory. This suggests that the bullish trend could extend further, particularly if macroeconomic conditions align with the technical setup. Given the current trajectory, a breakout above 151.45 could open the path toward 152.50, a level not seen since late 2022, while failure to sustain above 148.40 could trigger a pullback towards 146.80.
The broader outlook remains tied to upcoming Federal Reserve and Bank of Japan policy signals. The Fed’s stance on interest rates, along with any hints from the BoJ regarding potential policy shifts, will be critical drivers of USD/JPY’s next move. Traders should closely monitor central bank commentary and risk sentiment, as volatility could spike around key macro events.
Technically, the pair has recovered from recent lows, with early indications of a potential crossover in weekly stochastics from oversold territory. This suggests that the bullish trend could extend further, particularly if macroeconomic conditions align with the technical setup. Given the current trajectory, a breakout above 151.45 could open the path toward 152.50, a level not seen since late 2022, while failure to sustain above 148.40 could trigger a pullback towards 146.80.
The broader outlook remains tied to upcoming Federal Reserve and Bank of Japan policy signals. The Fed’s stance on interest rates, along with any hints from the BoJ regarding potential policy shifts, will be critical drivers of USD/JPY’s next move. Traders should closely monitor central bank commentary and risk sentiment, as volatility could spike around key macro events.