USD/JPY Price Forecast: Surges past 154.50 post hot CPI

• USD/JPY jumps over 1%, breaking 153.00 and 154.00 resistance levels.
• Hot US inflation fuels Treasury yield surge, boosting dollar strength.
• Technical outlook: Bulls eye 155.26, but key support lies at 153.00.

The USD/JPY rallied sharply on Wednesday after a hot US inflation report spurred a jump in the US 10-year Treasury yield, closely correlated with the major. Hence, the pair aimed higher, clearing the 153.00 and 154.00 figures on their way toward current spot prices, near 154.50.

USD/JPY Price Forecast: Technical outlook

The USD/JPY enjoyed an over 1% rally on Wednesday after clearing the 200-day Simple Moving Average (SMA) at 152.76, opening the door for further upside. Despite this, the pair found stir resistance at the Kijun-sen at 154.90 before consolidating near the 154.50 area,

Despite this, the pair is neutral to downward biased after registering a successive series of lower highs and lower lows. If bulls want to regain control, the USD/JPY must clear the 50-day SMA at 155.26, followed by the latest cycle high of 155.89.

On the other hand, a drop below 154.00 would expose the Senkou Span B at 153.76, followed by the 153.00 figure and the 200-day SMA at 152.76.

USD/JPY Price Chart - Daily