USDJPY – Bulls make another push towards the key 150 resistance level

USDJPY maintains a bullish tone, once again testing key resistance levels at 149.80/150.00 (bear-channel upper boundary/psychological) on Monday after facing a double rejection at 150 last week.

The technical outlook is improving on the daily chart, with the converging 10/20 DMA’s nearing a bullish crossover and the RSI trending higher. However, the 14-day momentum remains neutral around the midline, while the 55/100/200 DMA’s continue in a bearish alignment, partially offsetting positive signals.

On the fundamental side, mixed signals persist. Expectations that the BoJ will stay on a tightening path could lend support to the yen, but this is countered by the Federal Reserve’s hawkish stance, with recent indications of only two rate cuts this year amid concerns that inflation could rise due to escalating trade tensions.

Traders should watch the reaction at the 150 level for directional cues. A sustained break above this barrier could accelerate gains toward 151.25 (38.2% Fibonacci retracement of the 158.87/146.53 drop) and 151.76 (200DMA).

Conversely, another rejection at 150 would weaken near-term momentum, though the bullish bias would remain intact as long as USDJPY holds above the 20DMA (148.85).

Res: 150.00; 150.53; 151.00; 151.25
Sup: 149.45; 148.85; 148.72; 148.18