The USD/JPY is showing some signs of recovery, rising by 0.17% during the late North American session. However, it remains hesitant at the 150.00 level after previously slumping to a new year-to-date (YTD) low of 148.09. As of writing, the pair is trading at 149.73.
Technical Analysis and Key Levels
While the USD/JPY has managed to regain some ground, its overall outlook remains bearish. For a more substantial upward move, buyers need to break past the Tenkan-Sen, currently at 149.70. A successful move above this level would open the path towards the critical 150.00 resistance. A daily close above this psychological level could pave the way for further gains, with the next key resistance zone found between the Kijun-Sen and the 200-day Simple Moving Average (SMA), which sits around the 151.99-152.32 range.
On the downside, the Relative Strength Index (RSI) is pointing towards a continued bearish trend, suggesting that selling pressure remains dominant. For the bears to regain control, the pair needs to break below the February 25 swing low of 148.57. A drop below this level would open the door to further declines, with the next key support around the September 30 low at 141.64.
Conclusion
Despite the recent rebound, the USD/JPY faces strong resistance around 150.00, and its overall bias remains tilted to the downside. Traders will closely monitor the pair’s ability to clear key technical levels, particularly the Tenkan-Sen at 149.70 and the psychological 150.00 mark, to determine the next directional move.
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