USD/JPY Price Analysis: Pulls back from 11-month high near 149.50

USD/JPY retreats with a positive bias, holding grounds below 149.50.
Momentum indicators point toward a prevailing bullish sentiment in the market.
The psychological level at 150.00 could emerge as a key resistance, following October’s high.

Akhtar Faruqui FXStreet

USD/JPY retreats with a positive bias from the highs since November, trading lower around 149.40 during the Asian session on Thursday. The pair experiences upward support due to market caution about the US Federal Reserve’s (Fed) interest rate trajectory, coupled with higher US Treasury yields and economic data.

However, Japanese Finance Minister Shunichi Suzuki reaffirmed on Thursday that he is open to taking any necessary measures to address excessive foreign exchange (FX) market volatility. Suzuki also emphasizes that currencies move in a stable manner. The policymaker is closely watching FX moves with a sense of urgency, although declined to comment on any plans for a rate check.

The current upward momentum in USD/JPY appears to have a potential bullish bias, given that the 14-day Relative Strength Index (RSI) remains above the 50 level. However, there is a psychological resistance level at 150.00 that may pose a challenge for further gains.

If there's a strong breakthrough above the level, it could serve as an encouragement for USD/JPY bulls to explore higher levels, potentially targeting the area around the October high at 151.94.

On the flip side, the USD/JPY pair may encounter significant support levels in its price movement. The first notable support level could be around the 14-day Exponential Moving Average (EMA) at 148.27. Below that, there is the psychological support level at 148.00, which often holds significance in market dynamics.

If the pair breaks below the latter, it may then navigate towards the region around the psychological support level at 147.00, followed by the 23.6% Fibonacci retracement at 146.76.

The Moving Average Convergence Divergence (MACD) indicator is providing a bullish signal for the USD/JPY pair. The MACD line is positioned above both the centerline and the signal line. This configuration suggests that there is potentially strong momentum in the USD/JPY's price movement, indicating a prevailing bullish sentiment in the market.

USD/JPY: Daily Chart

USD/JPY: additional important levels

Overview
Today last price	149.42
Today Daily Change	-0.22
Today Daily Change %	-0.15
Today daily open	149.64

Trends
Daily SMA20	147.63
Daily SMA50	145.34
Daily SMA100	142.87
Daily SMA200	137.87

Levels
Previous Daily High	149.71
Previous Daily Low	148.86
Previous Weekly High	148.46
Previous Weekly Low	147.32
Previous Monthly High	147.38
Previous Monthly Low	141.51
Daily Fibonacci 38.2%	149.39
Daily Fibonacci 61.8%	149.19
Daily Pivot Point S1	149.1
Daily Pivot Point S2	148.56
Daily Pivot Point S3	148.25
Daily Pivot Point R1	149.95
Daily Pivot Point R2	150.25
Daily Pivot Point R3	150.79

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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