USD/JPY: Sideway Consolidation – Awaiting a Breakout?

USD/JPY is currently trapped within a trading range of 148.582 - 151.005, reflecting a tug-of-war between buyers and sellers. After a rebound from the lows, the price is facing strong resistance at the EMA 34 & 89, while also approaching a key resistance zone. This increases the likelihood of a potential reversal to the downside in the near term.

If the price fails to break above 151.005, selling pressure may intensify, pushing USD/JPY back toward 148.582. A breakdown below this level could trigger further downside momentum, opening the door for a move towards 148.000 and beyond. On the other hand, if buyers maintain control, USD/JPY may continue to fluctuate sideways before determining its next major trend.

Key Market Driver:
The upcoming speech by BOJ Governor Kazuo Ueda at the IMF event could induce volatility. If he maintains a hawkish stance, the JPY could strengthen, accelerating the decline in USD/JPY. Conversely, any dovish signals from BOJ could allow USD/JPY to stage a mild recovery before confirming its next directional move.