The USD/JPY pair continues its relentless climb, now trading around 155.19, gaining momentum as the yen struggles to find traction. With the RSI pushing into bullish territory and price action building on top of key moving averages, traders are watching closely to see whether the pair can clear the major resistance zone near 155.50-156.00.
Technical Outlook: Bulls Regain Full Control
The latest price action in the pair shows a powerful bullish structure:
* The 15-day and 20-day moving averages are in a strong upward alignment, confirming sustained bullish momentum.
* Price continues to ride above both moving averages, a hallmark of aggressive trend continuation.
* The RSI (14) has pushed to 66.1, reflecting strong buying pressure -- yet still shy of the overbought line, meaning the move may have more room before momentum overheats.
After weeks of orderly grinding higher, the pair has now entered a bullish acceleration phase, driven by macro fundamentals and technical follow-through.
Macro Drivers: Fed-Hawkish vs. BoJ-Cautious = Dollar Strength
Several macro themes are fuelling the pair's surge:
Bullish US Dollar Catalysts
* Fed officials continue to emphasize higher-for-longer policy.
* US yields remain elevated relative to global peers.
* Safe-haven flows are still favouring dollar exposure during risk cycles.
Bearish Yen Catalysts
* The Bank of Japan remains noncommittal about full policy normalization.
* Japanese inflation has cooled, reducing pressure on the BoJ to tighten.
* Yield differentials remain overwhelmingly in favour of the USD.
This divergence is the core engine behind the pair's persistent upside, and nothing on the macro horizon suggests that dynamic is changing yet.
Key Technical Levels to Watch
A decisive breakout above 156.00 opens the door toward 157.40, a level last tested during major yen-weakness cycles.
If price slips below 154.20, bulls may temporarily cool off, but the uptrend remains intact unless 153.70 breaks.
Sentiment Check: Bulls Are Confident, Bears Are Frustrated
Sentiment indicators and price behaviour reveal:
* Momentum traders adding to long positions
* Options markets pricing increased upside skew
* Bears forced to cover as resistance levels keep breaking
There is no sign of distribution or exhaustion yet -- just orderly upside pressure.
Takeaway
The pair is in a fully confirmed uptrend, supported by both macro fundamentals and technical momentum.
The pair is now approaching a critical breakout zone at 155.50-156.00, where a clean close above could unleash the next wave of gains.
If 156 breaks, momentum could accelerate toward 157.40.
If support fails at 154.20, consolidation may briefly return -- but the broader trend remains bullish.