Up over 200 pips on Japan PM comments

• USD/JPY is up more than 2% from a low of 143.42 following comments from Japan’s Prime Minister Ishiba.
• The pair is breaking through significant resistance, including the 50-DMA at 145.53, now trading near 146.47.
• For a bearish reversal, USD/JPY needs to break below the 50-DMA, with 145.00 as key support thereafter.

The greenback recovered against the Japanese yen on Wednesday, rising more than 2 percent after Japanese Prime Minister Ishiba commented that the economic environment was not ready for further rate hikes. Hence, USD/JPY bounced off the daily lows of around 143.42 and surged towards current exchange rates. At the time of writing, the pair is trading at 146.47.

USD/JPY Price Forecast: Technical Insights

USD/JPY has broken through key resistance levels and is descending towards the bottom of the Ichimoku (Kumo) Cloud.

First, it broke a resistance trendline drawn from the highs around August 15th, which moved to around 144.00/10. Once this was cleared, it opened the door for further.

After that, USD/JPY climbed above the October 1 high of 144.53, followed by the 145.00 figure. Once exceeded, it was out of the way for the bulls as they crossed the 50-day moving average (DMA) at 145.53 on the way to the current exchange rates.

For a bearish resumption, USD/JPY needs to break the 50-DMA below, which will expose the 145.00 mark.

USD/JPY Price Action – Daily Chart