The USD/JPY pair experienced volatility in recent sessions, dipping to a low of 153.549 before finding support and rebounding above the 154.40 level.
Picture: USD/JPY rebounds from 153.55 support, testing recovery near 154.40, as seen on the VT Markets app.
The pair’s movements reflect shifting sentiment amid US dollar weakness, stabilising bond yields, and broader market uncertainty tied to geopolitical and macroeconomic factors.
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The USD/JPY began the session on a weaker note, tracking dollar softness observed in early Asia trade. The pair fell sharply to test a key support level near 153.55, before buyers stepped in, pushing the price higher. As of now, the pair is trading at 154.431, showing signs of consolidation.
Technical analysis highlights that the pair remains below the 155.00 resistance zone, which coincides with its most recent peak at 155.024. On the downside, 153.55 has emerged as a key support, with buyers defending this level during the session.
The 15-minute moving averages (5, 10, 30) indicate a gradual recovery, with upward momentum confirmed by the MACD (12, 26, 9), which has shifted into positive territory.
This rebound aligns with a stabilisation in US Treasury yields, which had experienced two months of selling pressure before rebounding over the past week.
Additionally, sentiment surrounding the dollar remains cautious after the announcement of Scott Bessent as the nominee to lead the US Treasury.
While this news initially pressured the dollar, markets now appear to be recalibrating expectations.
Looking ahead, the USD/JPY will face its next test at the 155.00 level. A breakout above this resistance could open the door to further gains, while failure to sustain above 154.40 may see the pair retest the 153.55 support.
Market participants will closely monitor upcoming US data and bond market developments, as well as geopolitical factors, for additional directional cues.
For now, the pair’s ability to stabilise above 154.40 reflects tentative recovery momentum, though upside potential remains capped until broader dollar strength returns.
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