USD/JPY Price Forecast: Soars to weekly high, near 145.00 on hot US jobs report
- USD/JPY climbs 0.87% to 144.83, nearing breakout above the Ichimoku Cloud.
- Strong US jobs report and higher Treasury yields fuel Greenback’s rally.
- Bulls eye 146.00 and May 29 high at 146.28 as next upside targets.
USD/JPY extended its uptrend for two consecutive days, with the major currency pair reaching a new weekly high of 145.09, driven by solid US economic data on Friday. A strong US Nonfarm Payrolls report, rising US Treasury bond yields, and a slightly positive shift on sentiment toward US assets boosted the Greenback. At the time of writing, the pair trades at 144.83, up 0.87%.
USD/JPY Price Forecast: Technical outlook
The major has consolidated within the 142.00-145.00 area for the last five days and, as of writing, is threatening to crack above the Ichimoku Cloud (Kumo), which could open the door for further upside. Nevertheless, the lack of a catalyst so far has kept the USD/JPY pair subdued.
The Relative Strength Index (RSI) turned bullish after jumping sharply above its 50-neutral line. Hence, bulls seem to be gathering some steam.
Given the backdrop, the path of least resistance is tilted to the upside. The first resistance for the USD/JPY would be the 145.00 figure. A breach of the latter will expose Senkou Span B at 145.38. On further strength, traders could challenge 146.00, and May 29 swing high at 146.28. A decisive break would turn the pair bullish, clearing the path to test 150.00.
On the flip side, USD/JPY’s failure to hold above the bottom of the Kumo near 144.25/50 could exacerbate a drop to 144.00 and below. In that outcome, the next key support level, before plummeting sharply to 139.88, would be the June 3 swing low of 142.37.
USD/JPY Price Chart – Daily
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Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
