- USD/JPY climbs above 154.00, shrugging off stronger-than-expected Japanese December Flash PMI data.
- The pair maintains a bullish outlook, breaking through key technical levels, including the 200-day SMA and Kijun-Sen.
- Resistance is seen at the November 20 high of 155.89, while support levels are at the Kijun-Sen at 152.69 and the 152.10-152.11 zone.
The USD/JPY continues its upward trajectory as the Japanese Yen (JPY) lags behind its G10 peers. Despite an improvement in Japan’s Jibun Bank Flash PMIs for December, traders largely dismissed the data. The pair now trades above 154.00, a level last reached on November 26.
USD/JPY Price Forecast: Technical Outlook
USD/JPY has extended its rally, breaking above the 200-day Simple Moving Average (SMA) and the Kijun-Sen, clearing key levels like 153.00 and the critical 154.00 mark.
Momentum indicators, such as the Relative Strength Index (RSI), suggest further upside potential, with the next resistance at the November 20 high of 155.89. A breakout above this level could target 156.00 and the November 15 swing high of 156.75.
On the downside, if the pair drops below 154.00, initial support lies at the Kijun-Sen at 152.69, followed by the Senkou Span A at 152.21. A deeper decline would test the confluence of the 50-day and 200-day SMAs at 152.10-152.11.
