USD/JPY – Staying above a key broken Fibonacci level keeps bullish momentum intact, with potential for a move beyond 150

USD/JPY remains poised for gains, pressing against the top of its recent consolidation range in early Monday trading.

With a second consecutive weekly bullish close, and last week’s long-tailed candle, market sentiment indicates that bulls are preparing to challenge the key psychological level of 150. This follows a period of consolidation above the broken Fibonacci pivot at 148.12, which represents the 38.2% retracement of the 161.95/139.57 decline.

A decisive break above 150 could pave the way for a test of 150.74 (50% retracement) and expose the crucial resistance at 151.81, which aligns with the top of the thick daily cloud.

However, there is potential for bulls to show indecision, leading to extended consolidation, as technical signals on the daily chart are mixed. Strong bullish momentum and supportive bull-crosses (10/55 and 20/55 MAs) underpin the price action, but overbought stochastic levels and a developing 100/200 death cross could introduce additional resistance.

In the near term, the bullish outlook is expected to hold as long as the price stays above the broken Fibonacci support at 148.12, reinforced by the rising 10-day moving average at 147.84. A break below this level, however, could suggest that the recovery from the 2024 low of 139.57 (posted on September 16) is losing momentum.

Res: 149.56; 150.00; 150.76; 151.81
Sup: 148.91; 148.12; 147.84; 145.91