USD/JPY Price Analysis: Extends gains but remains below 156.00

• USD/JPY maintains uptrend, trading at 155.66 after hitting a daily low of 155.25.
• Technical outlook suggests further gains with resistance at 156.05, 157.00, and YTD high at 160.32.
• Key support levels include 155.18, 155.00, and May 16 low at 153.60 if price drops below 155.69.

The USD/JPY extended its gains late on Friday’s North American session, though it’s set to finish the week unchanged. The major trades at 155.66, up 0.18% after hitting a daily low of 155.25.

USD/JPY Price Analysis: Technical outlook

Despite the conditions to extend their gains, traders should be aware of the Japanese authority's intervention threats. That said, the USD/JPY uptrend remains intact as long as price action achieves two goals: persisting above the Ichimoku Cloud (Kumo) and staying above the uptrend trendline drawn from the January 2024 lows.

The Relative Strength Index (RSI) favors buyers, standing above the 50-midline with enough room to spare before reaching overbought territory.

Therefore, the path of least resistance is upwards. The first resistance would be the Kijun-Sen at 156.05. Once cleared, the next stop would be 157.00, followed by the April 26 high of 158.44, ahead of challenging the year-to-date (YTD) high at 160.32.

On the flip side, if USD/JPY drops below the Senkou Span A of 155.69, the pair could be headed towards retesting lower support levels. Bulls' first line of defense would be the Tenkan-Sen at 155.18, followed by 155.00. Once hurdled, the next stop would be the May 16 low of 153.60, followed by the Sekou Span B at 153.06.

USD/JPY Price Action – Daily Chart