USDJPY – bulls maintain control, testing key resistance levels ahead of US inflation data

USDJPY extends its advance for the sixth consecutive session on Friday, with the fresh bullish leg that started from last week’s correction low at 149.37 breaking through the key psychological barrier at 153.00.

The pair maintains a firm tone as the dollar continues to draw support from the wide interest rate differential between the Federal Reserve and the Bank of Japan. Expectations that Japan’s new Prime Minister will maintain a dovish stance are helping to offset growing market bets on a Fed rate cut at the upcoming October 29 policy meeting.

Persistently high US inflation also underpins the dollar, with traders awaiting today’s release of the delayed September CPI report. A stronger-than-expected reading would likely provide an additional boost to the greenback.

Bulls are now targeting key resistances at 153.27/33 (post-election high in Japan / upper boundary of the broader bullish channel). A firm break above this zone would strengthen bullish momentum and expose the next target at 154.39 (Fibo 76.4% retracement of 158.87–139.88).

Technical indicators on the daily chart present a mixed picture—moving averages remain in a strong bullish setup, yet positive momentum has started to fade, and stochastic readings indicate overbought conditions. Still, the formation of a bullish engulfing pattern on the weekly chart reinforces the broader positive outlook.

Immediate support lies at 152.35, followed by 151.60 (rising 10DMA) and 150.70 (20DMA / top of the weekly cloud).

Res: 153.33; 154.00; 154.39; 154.80
Sup: 152.35; 151.60; 150.70; 150.00