The USD/JPY pair traded at 157.36, up 0.22% on Friday as the Bank of Japan (BoJ) kept rates unchanged, causing the Japanese Yen (JPY) to weaken. This was due to increased risk aversion and a hawkish stance from the Federal Reserve earlier in the week. The pair is currently trading at 157.36.
On a technical note, the Relative Strength Index (RSI) indicates bullish momentum, although there are signs that buyers may be losing steam. Key resistance levels for the pair are at 158.25 and 158.44. Support levels include the Tenkan-Sen at 156.00, June 12 low at 155.72, and the Ichimoku Cloud low at 153.35/40.
The USD/JPY has been steadily climbing, with buyers maintaining control. However, they have struggled to hold above 158.00, which may have allowed for further gains. To extend profits, buyers need to surpass the June 14 high of 158.25 and the April 26 high of 158.44 before potentially reaching 159.00 and the year-to-date high of 160.32.
On the downside, if the USD/JPY falls below 156.00, it could test the June 12 low of 155.72 and potentially reach 154.00 before testing the Ichimoku Cloud low of 153.35/40.
In summary, the USD/JPY pair is showing bullish momentum, with key resistance and support levels to watch. Traders should keep an eye on market developments to make informed trading decisions.