At the moment, the USD/JPY pair has paused around the 154.00 psychological level, facing resistance at 154.50 on its way toward 155.00. A sustained move above the horizontal barrier at 154.50 would provide new momentum for the bulls.
Given that the daily chart oscillators remain firmly in positive territory and are still far from the overbought zone, spot prices are likely to aim for a breakout above the psychological 155.00 level. The bullish momentum could extend further toward 155.60, before the pair reaches the 156.00 round level.
On the other hand, a pullback below the 154.00 level could be seen as a buying opportunity within the 153.60–153.50 level. This would help limit the pair's downside near the 153.00 level. However, a convincing break below this area would open the way for a deeper decline toward the 152.15–152.10 level, which now serves as a solid base for the near term.
