USD/JPY trades on the front foot on Tuesday as the Japanese Yen weakens broadly after reports that Japan’s Prime Minister Sanae Takaichi signaled caution over further Bank of Japan (BoJ) rate hikes during a meeting with Governor Kazuo Ueda last week. However, the pair is struggling to extend gains as the US Dollar (USD) eases from its intraday highs.
At the time of writing, USD/JPY trades around 155.70 after hitting a daily high of 156.26, up nearly 0.64%.
From a technical perspective, the daily chart suggests a neutral to mildly bullish near-term outlook. Price action has climbed back above the 100-day SMA near 155.10, while the 50-day SMA around 156.00 is now acting as immediate resistance, capping further upside attempts.
Momentum indicators show early signs of stabilization. The Relative Strength Index (RSI) has recovered toward 53 after approaching oversold territory earlier this month, signaling improving bullish momentum.
Meanwhile, the Average True Range (ATR) near 1.30 reflects elevated but steady volatility, favoring gradual trend continuation rather than an abrupt reversal as long as underlying support levels hold.
On the downside, immediate support is seen at the 100-day SMA around 155.10. A break below this level would expose the 154.00 region as the next key support.
Below 154.00, the 152.00 zone becomes pivotal, as a decisive move beneath that area would invalidate the emerging bullish bias and shift focus back toward a deeper corrective phase.
On the upside, a sustained move above the 50-day SMA could open the door toward the 157.00-157.50 region, where the recent swing highs cap the upside.
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