USD/JPY Price Forecast: Skyrockets over 200-pips on Japan’s PM comments

• USD/JPY surges over 2%, rallying from a low of 143.42 following comments from Japan’s Prime Minister Ishiba.
• The pair breaks significant resistance, including the 50-DMA at 145.53, now trading near 146.47.
• For a bearish reversal, USD/JPY needs to drop below the 50-DMA, with 145.00 as the subsequent key support.

The Greenback recovered against the Japanese Yen on Wednesday, rallying over 2% after Japanese Prime Minister Ishiba commented the economic environment is not ready for additional rate hikes. Hence, the USD/JPY jumped off daily lows of around 143.42 and soared sharply toward current exchange rates. At the time of writing, the pair trades at 146.47.

USD/JPY Price Forecast: Technical outlook

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

Firstly, it broke a resistance trendline drawn from around August 15 highs, which passed at around 144.00/10. Once this was cleared, it opened the door for further upside.

After that, the USD/JPY climbed above the October 1 high of 144.53, followed by the 145.00 figure. Once surpassed, there was not in the bull's path as they exceeded the 50-day moving average (DMA) at 145.53, on its way toward the current exchange rates.

For a bearish resumption, the USD/JPY must clear the 50-DMA on the downside, which will expose the 145.00 mark.

USD/JPY Price Action – Daily Chart