USD/JPY – Short-term recovery encounters resistance at the key 150 level

USD/JPY tested the key 150 barrier again early Wednesday, challenging the psychological level, the upper boundary of the bear channel, and the 30-day moving average. This move offset the initial bearish signal from Tuesday’s inverted hammer, which formed after a strong upside rejection just below the 150 zone.

The yen weakened following the Bank of Japan’s decision to keep interest rates unchanged at 0.5%, as policymakers responded to uncertainty over the negative impact of tariffs while also acknowledging the risk that an escalating trade war could fuel inflation.

Mixed daily indicators suggest a potential stalling of the recovery from the March 11 low of 148.53, which was triggered by a double bear trap below the 146.95 Fibonacci support.

Another failure at the 150 level would increase downside risks, though the near-term bias remains bullish as long as the price holds above the 20-day moving average at 148.86.

A decisive break above 150 could drive stronger bullish momentum, exposing targets at 151.30 and 151.88, aligning with the March 3 lower high and the 200-day moving average.

Conversely, a drop below the 20DMA would weaken the near-term structure and signal a potential end to the corrective phase.

Res: 150.00; 150.73; 151.00; 151.30
Sup: 149.14; 148.86; 148.35; 147.73