- USD/JPY could revisit the yearly high at 151.72 if the US Dollar strengthens.
- Key support lies at the main level of 151.00 behind the 21-day EMA.
- Technical indicators suggest bullish momentum for the pair.
The pair USD/JPY consolidates near 151.20 during the European session on Wednesday, retreating from the recent yearly high of 151.72 reached on Tuesday. The pair rose after the Bank of Japan removed the 1% ceiling for the 10-year government bond yield.
Immediate support lies at 151.00 and the 21-day EMA at 149.76 is the next support level. A decisive break below the latter could open the door for USD/JPY bears to target the 23.6% Fibonacci retracement around 148.28.
The unexpected decline in the Caixin Chinese Manufacturing Purchasing Managers’ Index (PMI) could contribute to pressure on the Japanese Yen (JPY). A reported figure of 49.5 was recorded in October, falling below the expected 50.8 and September’s expansion at 50.6.
The position of the moving average convergence divergence (MACD) line above the center line and the signal line suggests possible bullish momentum. Furthermore, the 14-day Relative Strength Index (RSI) above the 50 level indicates favorable market sentiment, supporting the notion of bullish momentum for the USD/JPY pair.
To the upside, USD/JPY could face resistance near the October 2022 highs at 151.94, which aligns with a psychological level of 152.00.
USD/JPY: Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
