Ella 
Yesterday, we highlighted that “the rebound in USD/JPY may extend above 150.00.” We also highlight that “the important resistance level at 150.50 is unlikely to be threatened. We were right, with USD/JPY rising to highs of 150.31. Today, the pair could rise above 150.50. As upward momentum has not strengthened significantly, the price is unlikely to sustain above this level or threaten the next resistance level at 151.00. Support lies at 149.95; a break above 149.75 would mean that current upward pressure has subsided.
Next 1-3 weeks: Our latest view, from two days ago (October 24, spot price was 149.70), is that USD/JPY may temporarily trade in the 149.00/150.50 range. Yesterday, the pair rose to a high of 150.31. The upward momentum is starting to improve. However, for USD/JPY to continue higher, it must break out and hold above 150.50. Next resistance is at 151.00. As long as the pair remains above 149.35 in the coming days, the risk of a significant move above 150.50 will remain intact.
