It climbs above 147.00 as bulls target Kumo

• USD/JPY rises above 147 for the first time since September, driven by escalating tensions in the Middle East.
• The upbeat RSI signals further upside potential, with buyers eyeing resistance at 147.25, followed by 147.78 and 148.00.
• A reversal could see USD/JPY test support at the 50-DMA of 145.38, with further downside risk at 145.00 and 143.93.

USD/JPY is higher on Thursday, climbing above 147.00 for the first time since September, trading at 146.92 and gaining 0.31% at the time of writing. The narrative in financial markets has not changed as traders hear the drums of war as the conflict in the Middle East escalates, triggering a flow to safe-haven currencies, boosting the greenback.

USD/JPY Price Forecast: Technical Insights

The USD/JPY daily chart is neutral or bearish as buyers tested the bottom of the Ichimoku Cloud (Kumo) at 147.25. Momentum suggests that buyers remain in charge and could push prices higher.

The Relative Strength Index (RSI) is bullish, aiming for the upside. This means that USD/JPY is tilted to the upside in the short term.

USD/JPY needs to break the top of the Kumo at 147.25. In this result, the next resistance would be the Senkou Span B at 147.78, followed by 148.00. If these levels are cleared, the 200-day moving average (DMA) would be next at 151.02.

Conversely, if the pair reverses, the first support would be the 50-DMA at 145.38. Once broken, the next stop would be the 145.00 figure, followed by the Senkou Span A at 143.93.

USD/JPY Price Action – Daily Chart