USD/JPY Price Analysis: Climbs above 156.00 as bulls target 157.00

• USD/JPY up 0.17% driven by US producer price data suggesting potential for sustained high Fed rates.
• Technicals: Six days of gains, with strong upward momentum above the Ichimoku Cloud.
• Resistance at 157.00, then May 1 high of 157.98 and April 26 high of 158.44.
• Support at 156.00, 155.90 (Kijun-Sen), and 155.10 (Senkou Span A).

The USD/JPY climbed during the North American session after inflation data in the United States (US) showed that prices on the producer side edged higher than expected. This suggests the Fed might maintain rates higher for longer amid fears that consumer inflation could reaccelerate. The pair trades at 156.48, up by 0.17%.

USD/JPY Price Analysis: Technical outlook

The USD/JPY extended its gains for the sixth consecutive trading day, reigniting fears that Japanese authorities could intervene in the Forex markets. Momentum remains tilted to the upside, as price action remains above the Ichimoku Cloud (Kumo). At the same time, the Relative Strength Index (RSI) trends are higher in bullish territory, which could open the door to re-test yearly highs.

If buyers reclaim the 157.00 figure, that could open the door to challenging the May 1 high at 157.98. Once surpassed, key resistance levels emerge, like Apri’s26 high at 158.44, followed by the April 29 high of 160.22.

On the other hand, if sellers drag prices below 156.00, further losses lie below. The next support would be the Kijun-Sen at 155.90. Should the pair extend its downtrend, the next demand area emerges at the Senkou Span A at 155.10 before sellers challenge the Tenkan-Sen at 154.31.

USD/JPY Price Action – Daily Chart