USD/JPY Rebound Gains Traction; Bulls Eye Further Upside Toward 150.00
USD/JPY has started the week positively, rising steadily from an early session low of 148.48 toward the intraday high at 149.10, according to EBS data. The pair continues to rebound convincingly from last week’s five-month low at 146.55, driven primarily by reduced near-term yen demand as market fears surrounding U.S. tariffs and recession concerns show initial signs of stabilization. Technical indicators confirm this recovery momentum, highlighted by the bullish crossover developing on short-term moving averages. The pair currently trades comfortably above the immediate support provided by the 9-day exponential moving average at 148.38, suggesting potential for additional upward momentum.
From a technical standpoint, short-term oscillators have shifted to a bullish configuration, with the RSI climbing above 50, signaling renewed buying interest and room for further price gains. The USD/JPY daily chart clearly indicates a bullish reversal pattern taking shape, following last week’s test of the critical five-month low at 146.55, suggesting a short-term bottom is in place. Immediate resistance lies at Monday’s intraday high at 149.10, and a decisive breakout above this level would expose stronger resistance near the February 25 low at 149.53. Further gains beyond this would open the path to a retest of the psychologically significant 150.00 level, which also coincides with critical resistance around the February 7 low at 150.93.
However, while short-term bullish signals dominate, traders remain cautious ahead of the Bank of Japan’s rate decision due next week. The BOJ is expected to maintain rates steady, but any unexpected hawkish signals could curb USD/JPY’s upside. Additionally, broader market sentiment continues to hinge significantly on geopolitical developments, particularly U.S. trade tariffs and associated global growth risks. Given these lingering uncertainties, traders should remain vigilant, as a failure to sustain momentum above 149.10 could see the pair revert toward recent lows around 147.00.