Title: USD/JPY Challenges Key Resistance – Technical Analysis (April 11, 2025)
Source Credit: Economies.com, original article by Economies.com analysis team
The USD/JPY currency pair continues to display bullish momentum as it approaches critical technical resistance levels. As of today, April 11, 2025, the pair is actively testing the resistance at 151.70, a zone that has proven significant in previous sessions. A sustained push higher could invalidate near-term bearish scenarios and open the door for further gains, while failure to break through decisively may result in a transient retracement. The pair’s performance at this juncture will likely determine its short-term direction.
Overview of Recent Price Action
– The USD/JPY pair continues on an upward trajectory driven by strong bullish momentum and favorable macroeconomic conditions.
– After achieving a clear intraday incline on the previous trading day, the pair is currently trading near the 151.70 resistance region, a historically significant barrier.
– This level acts as a pivotal area that traders are monitoring for either a breakout or rejection.
Technical Indicators and Chart Analysis
At present, several technical elements are contributing to the upward push in USD/JPY:
1. Trend Direction:
– The short-term price movement exhibits a continuation of an ascending trend, supported primarily by higher highs and higher lows on the hourly and daily charts.
– The bullish trajectory was confirmed by the recent hold above the key support threshold near the 150.80 region.
2. Resistance and Support:
– Key resistance is at 151.70, where upside price action has encountered strong selling pressure on previous attempts.
– Clearing this barrier would likely open the door for a test of the next main resistance at 152.50 and potentially 153.00 over extended sessions.
– On the downside, immediate support is noted around 151.00 followed by 150.80. These levels are expected to provide near-term support if the pair fails to sustain upward momentum.
3. Moving Averages:
– The 50-period Exponential Moving Average (EMA) continues to slope upward beneath price action, offering dynamic support to the pair.
– Price currently trades well above the 100-period EMA, highlighting medium-term bullish strength.
4. Momentum Indicators:
– The Relative Strength Index (RSI) remains above the 60-level without yet reaching overbought territory, indicating that there is still room for additional upside movement.
– The Moving Average Convergence Divergence (MACD) indicator maintains a bullish crossover, with histogram readings remaining positive and further expanding.
Implications of a Bullish Breakout
If the pair is able to decisively breach the 151.70 resistance level, analysts note the potential for an extended upward movement. A successful breakout would signal a resumption of the broader uptrend and shift sentiment further in favor of buyers.
Potential next targets in the event of a breakout:
– 152.50: A psychological level and technical resistance based on historical highs.
– 153.00: A rounded whole number often considered a major psychological barrier.
– 153.85: The multi-decade high previously reached during the October 2022 Japanese yen intervention.
Factors Supporting Bullish Outlook
A confluence of economic and policy-related factors continue to underpin the bullish bias for the USD/JPY pair. These include:
1. Interest Rate Differentials:
– The Federal Reserve continues to maintain an elevated interest rate stance amid persistent inflation in the United States, with no imminent signs of a rate cut.
– Conversely, the Bank of Japan remains committed to ultra-loose monetary policy for the time being, with minimal increases in bond yields or overnight interest rates.
– This widening interest rate differential continues to dampen demand for the Japanese yen while supporting appetite for the U.S. dollar.
2. Stable Risk Appetite:
– Global equity markets have remained relatively stable, with investors continuing to favor higher-yield
Explore this further here: USD/JPY trading.