Ella 
The USD/JPY pair stabilized around the 154.60 level on Friday, following a descent to a four-day low of 153.59, triggered by escalating geopolitical tensions stemming from the Israel-Iran conflict. However, Tehran’s reassurance that they have no immediate plans for retaliation alleviated market concerns, leading to a correction in the pair’s movement. Currently, the pair trades at 154.62, showing minimal change.
Technical Outlook:
Examining the daily chart, the pair appears to be consolidating near recent peak levels, just shy of the psychological threshold at 155.00. Japanese authorities’ verbal interventions, advocating for orderly movements in the Forex markets, have kept buyers cautious about pushing the USD/JPY beyond 155.00. Nevertheless, a breach of this level, without intervention, could expose historical highs, including the August 1990 peak of 155.78, followed by the April 1990 high at 160.32.
Conversely, if selling pressure intensifies and drives the exchange rate below 154.00, it could initiate a pullback. The initial support level would be the Tenkan-Sen at 153.18. Further downside momentum might lead prices below the Senkou Span A at 152.29, followed by the Kijun Sen at 151.41. Subsequently, the 50-day moving average (DMA) at 150.89 would come into focus as the next support level.
