Jumps to 144.00 as Powell speaks

• USD/JPY gains more than 1% to trade at 143.69 after Fed Chairman Powell suggests he is in no rush to accelerate rate cuts.
• Despite recent gains, USD/JPY remains below key resistances such as the 200-DMA and Ichimoku Cloud, maintaining a bearish outlook.
• Break above 144.00 could propel USD/JPY towards 145.00; a pullback to 143.46 and 143.39 is likely if resistances persist.

USD/JPY rallied late in the North American session on Monday, gaining over 1% to trade at 143.69 after Federal Reserve Chairman Jerome Powell came through on the news.

The Fed chairman said that inflation in goods and services had broadly returned to pre-pandemic levels, added that the job-finding rate had fallen “very significantly” and said there was no need to accelerate rate cuts.

USD/JPY Price Forecast: Technical Insights

USD/JPY remains bearish despite posting solid gains and climbing above the Tenkan-Sen and Kijun-Sen, each at 143.46 and 143.39 respectively. However, price action remains below the 200-day moving average (DMA) and below the Ichimoku Cloud (Kumo), suggesting that sellers are in charge.

The Relative Resistance Index (RSI) suggests that buyers are gaining some steam, but will need to clear key resistance levels.

If USD/JPY breaks above 144.00, the next ceiling level will be 145.00, followed by the 50-day moving average (DMA) at 145.92. The next stop would be the bottom of the Kumo around 148.00-148.20.

Conversely, if USD/JPY remains below 144.00, look for a pullback to the Tenkan-Sen at 143.46. Immediately after this level is the Kijun-Sen at 143.39, followed by the 143.00 figure.

USD/JPY Price Action – Daily Chart