The USD/JPY pair has rallied for three consecutive days, trading above the 150.00 mark after a low of 148.60. Currently priced at 150.59, it needs to surpass 150.93 to break the broader downtrend.
Key resistance levels are set at 151.00 and 151.50. If the pair fails to hold above 150.00, it could decline towards the support level of 148.57.
How central bank policy is shaping price action
The Bank of Japan’s monetary policy significantly influences the Yen’s value, alongside the differential between Japanese and US bond yields. In times of market distress, the Yen often strengthens due to its safe-haven status.
We’re seeing a sustained recovery in the pair, but momentum will need an extra push to break out of the broader downtrend. That means traders should keep a close watch on whether it can clear 150.93 in the coming sessions. If that level holds firm against buying pressure, we could see fresh downward movement.
Resistance at 151.00 and 151.50 is within reach, and each test of these levels will indicate whether bullish sentiment has enough fuel to drive an extended rally. A failure to maintain a position above 150.00 could quickly swing sentiment the other way, bringing 148.57 back into focus. That’s the line in the sand where support could stabilise price action.
Monetary policy decisions from Tokyo continue to play a major role in shaping price movements. The contrast between interest rates in Japan and the US remains a defining factor in this trend. This difference affects capital flows, which can push the pair up or down depending on shifts in bond yields. Alongside this, the Yen’s historical position as a safe-haven asset means bouts of market uncertainty could cause rapid strength, even if fundamentals point in the opposite direction.
Key levels to watch in the coming sessions
For short-term positioning, we should assess whether momentum builds towards resistance or if sellers step in before it gets there. If 150.93 proves too much to overcome, a reversal looks more likely. If broken, however, the path towards 151.50 opens up rapidly. The next few sessions will be telling.
