The USD/JPY saw a 0.17% increase due to US producer price data indicating potential for sustained high Fed rates. The pair traded at 156.48, marking the sixth consecutive day of gains. Technical analysis shows strong upward momentum above the Ichimoku Cloud, indicating a bullish trend. Resistance levels are identified at 157.00, 157.98, and 158.44, while support levels are found at 156.00, 155.90, and 155.10.
The US producer price data showing an increase in prices on the producer side led to the USD/JPY climbing during North American trading. This suggests that the Fed may keep rates higher for a longer period, as concerns about consumer inflation resurfaced. The pair continued its upward momentum, with the RSI trending higher in bullish territory on the daily chart.
If buyers manage to surpass the 157.00 level, the pair could target the May 1 high at 157.98. Further resistance levels include the April 26 high at 158.44 and the April 29 high at 160.22. Conversely, if sellers push prices below 156.00, the pair may find support at the Kijun-Sen at 155.90. Additional support levels are seen at the Senkou Span A at 155.10 and the Tenkan-Sen at 154.31.
The technical outlook for USD/JPY remains bullish, with potential for a re-test of yearly highs if momentum continues. The pair’s movement above the Ichimoku Cloud supports further upside, while the RSI indicates a positive trend. Traders will be monitoring key resistance and support levels to gauge the continuation of the current upward momentum in the Forex markets.
In conclusion, the USD/JPY’s recent gains have been driven by US producer price data suggesting the potential for sustained high Fed rates. Technical analysis shows strong upward momentum above the Ichimoku Cloud, with key resistance levels identified at 157.00, 157.98, and 158.44. Support levels are found at 156.00, 155.90, and 155.10, indicating a bullish outlook for the pair in the near term. Traders will be watching closely for any developments that could impact the USD/JPY’s continued upward trajectory.
