USD/JPY Price Forecast: Retreats below 150.00 sponsored on falling yields

• USD/JPY retreats from a two-month high of 150.32, pressured by a decline in US Treasury yields.
• The pair faces key resistance at the 100-DMA and top of the Ichimoku Cloud around 150.84/151.50 before turning bullish.
• Further declines could see USD/JPY testing support at 148.84, with a potential drop to 147.35 if sellers gain momentum.

The USD/JPY retreats after hitting a two-month high of 150.32, edges down over 0.45%, and trades at 149.55 at the time of writing. Broad US Dollar weakness and the US 10-year T-note yield drop capped the pair's advance to challenge higher prices.

USD/JPY Price Forecast: Technical outlook

The USD/JPY consolidated after hitting a new monthly high above 150.00, a level last seen since July 2024, yet it retreated somewhat to the 149.50 area, as it continued to climb steadily during the last eight days.

As the pair approaches the top of the Ichimoku Cloud (Kumo) and the 100-day moving average (DMA) at 150.84, buyers would have a complex scenario to break the 150.85/151.50 area. If surpassed, the USD/JPY would shift bullish, and it could be headed to test the July 30 high at 155.21, the latest swing high before the pair plummeted toward 141.69 on a five-day span.

Conversely, if USD/JPY extends its losses past the Tenkan-Sen at 148.84, sellers could move in and drive the price toward the October 8 low of 147.35 before testing the Senkou Span A at 146.87.

USD/JPY Price Action - Daily Chart