USD/JPY Price Forecast: Snaps three-day rally, tumbles below 148.50

Source Fxstreet
  • USD/JPY retreats after failing to extend its rally, despite US 10-year Treasury yield rising five basis points.
  • Technical outlook remains upward biased, with buyers eyeing a break above 149.14 and targeting 150.00 in the short term.
  • A drop below 148.00 could see further downside, with key support at 147.00 and the bottom of the Ichimoku Cloud at 146.87.

The USD/JPY retreated after rallying for three straight days, even though the US 10-year Treasury noy yield rose five basis points. Risk aversion drives price action as the Middle East war escalates amid an exchange of fire between Israel, Hezbollah, and Hamas. At the time of writing, the pair trades at 148.12 after hitting a daily peak of 149.14.

USD/JPY Price Forecast: Technical outlook

The USD/JPY failed to extend its uptrend after piercing inside the Ichimoku Cloud (Kumo), which opened the door for further upside. Alongside that, the pair cleared the 50-day moving average (DMA) at 145.17, and since then, buyers have set their sights on 150.00.

Bullish momentum has faded, as shown by the Relative Strength Index (RSI) slope’s downward aiming. Still, the USD/JPY is upward biased in the short term.

 Given the backdrop, the USD/JPY first resistance will be the 149.14 daily high of October 7. Once surpassed, the next stop would be 150.00. If those levels are surrendered, bulls could challenge the 200-DMA at 151.09.

Conversely, if the pair drops below 148.00, bears can drag the exchange rate towards 147.00 as they would like to drive prices toward the latest key support, the bottom of Kumo at 146.87.

USD/JPY Price Action – Daily Chart

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.02% 0.24% -0.37% 0.36% 0.52% 0.56% -0.48%
EUR 0.02%   0.33% -0.29% 0.41% 0.52% 0.57% -0.49%
GBP -0.24% -0.33%   -0.68% 0.10% 0.20% 0.28% -0.70%
JPY 0.37% 0.29% 0.68%   0.72% 0.88% 0.88% -0.08%
CAD -0.36% -0.41% -0.10% -0.72%   0.19% 0.18% -0.84%
AUD -0.52% -0.52% -0.20% -0.88% -0.19%   0.09% -0.97%
NZD -0.56% -0.57% -0.28% -0.88% -0.18% -0.09%   -1.00%
CHF 0.48% 0.49% 0.70% 0.08% 0.84% 0.97% 1.00%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: Yet to be confirmed US-Iran MOU caps US Dollar's upsideHere is what you need to know on Friday, May 29:
Author  FXStreet
7 hours ago
Here is what you need to know on Friday, May 29:
placeholder
How Trumponomics Influenced Oil Price Volatility in the Iran War Understand how the Strait of Hormuz shock moved markets, and what CFD traders watched next.
Author  Rachel Weiss
13 hours ago
Understand how the Strait of Hormuz shock moved markets, and what CFD traders watched next.
placeholder
Finding The Best Japan Stocks to Buy? These are Top Japanese Companies to Watch Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
Author  Mitrade
14 hours ago
Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
placeholder
WTI falls to near $87.00 on potential US-Iran ceasefire extensionWest Texas Intermediate (WTI) oil price extends its losses for the third successive day, trading around $87.20 per barrel during the Asian hours on Friday.
Author  FXStreet
15 hours ago
West Texas Intermediate (WTI) oil price extends its losses for the third successive day, trading around $87.20 per barrel during the Asian hours on Friday.
placeholder
Trump’s ‘Copper Tariffs’ June Countdown. US Copper Imports Surge, Will Copper Prices Hit New Highs?On May 27, Bloomberg reported that copper trading activity has intensified as market expectations of potential copper tariffs under a Trump administration heat up, prompting traders to sh
Author  TradingKey
Yesterday 08: 08
On May 27, Bloomberg reported that copper trading activity has intensified as market expectations of potential copper tariffs under a Trump administration heat up, prompting traders to sh
Related Instrument
goTop
quote