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• The USD/JPY currency pair advanced to reach the 150.16 mark, lifted by US inflation figures and a positive consumer outlook.
• Fed's Bostic and Daly called for a cautious stance on rate cuts, advocating patience.
• The technical outlook seemed to suggest bullish potential for the USD/JPY pair, as targets beyond the 151.00 level were eyed, along with key supports in focus.

The USD/JPY currency pair appeared set to finish the trading week positively, as the duo was seen clinging above the 150.00 figure, posting daily gains of 0.16%, and exchanging hands at around 150.16 on Friday.

Fundamentally speaking, Friday’s data seemed to suggest that inflation in the United States has been stickier than expected, as shown by the latest Producer Price Index (PPI) report, with the headline and underlying PPI exceeding the consensus and the previous month’s reading. However, the latest Consumer Sentiment report showed Americans remain optimistic about the economic outlook, despite upward inflation expectations for the year.

Given this backdrop, Federal Reserve officials Bostic and Daly acknowledged the progress on inflation but remained cautious about providing a timetable for interest rate cuts. Both suggested that patience is required before the Fed can begin its easing cycle.

From a technical standpoint, the USD/JPY currency pair appeared neutral to upward biased after peaking at around the 150.00-150-88 area following the release of US inflation figures. For a bullish continuation, buyers would have to lift the exchange rate above the 151.00 mark, followed by the Nov. 13 high at 151.91, before challenging the 152.00 level.

Conversely, if USD/JPY pair could drop below the 150.00 figure, the first support would be seen at the Tenkan-Sen formation at 149.25. The next support would be the Senkou Span A structure at the 148.43 mark, followed by the 148.00 figure. Downside risks could emerge at the Kijun-Sen level at 147.62.

USD/JPY Price Action – Daily Chart

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USD/JPY Technical Levels

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