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>>USD/JPY outlook: Pair climbs to 155.30 as the robust US dollar gathers momentum.

USD/JPY outlook: Pair climbs to 155.30 as the robust US dollar gathers momentum.

crypthub

about 11 hours ago

Current Price Action

The USD/JPY pair is trading near 155.30, marking a strong rebound in May 2025. This move reflects a broad‑based strengthening of the US dollar across major markets. Traders are reassessing expectations as divergent central‑bank policies shape the outlook.

Technical Outlook

The 155.30 level serves as a psychological barrier and former consolidation zone. The pair holds above its 50‑day moving average and stays within an upward channel, while resistance at 156.00 looms. RSI is above 50 and MACD shows a bullish crossover, supporting continued momentum.

Fundamental Drivers

US consumer spending and a tight labor market have raised expectations of higher‑for‑longer Fed rates, widening the yield gap with Japan. The Bank of Japan’s gradual policy normalization keeps the Yen low‑yielding, reinforcing the dollar’s appeal. This policy divergence remains the primary catalyst for the USD/JPY rise.

Market Sentiment

COT data reveal a buildup of net long positions on the dollar, amplifying short‑term momentum. Risk‑on flows and carry‑trade activity further depress the Yen. Upcoming US CPI, Fed commentary, and any BOJ policy shift will be crucial in determining whether the rally sustains or reverses.