• USD/JPY slips to 149.21 as US 10-year Treasury yield drops over eight basis points.
• Despite recent dip, the pair remains in a neutral to bullish stance, hovering inside the Ichimoku Cloud.
• Key support at 149.00; a break below could trigger further declines towards 147.95 and beyond.

The USD/JPY slipped over 0.30% on Tuesday due to risk aversion and falling US Treasury bond yields. The US 10-year benchmark note rate plummeted over eight basis points (bps) and pushed the exchange rate lower due to its positive correlation with the pair. At the time of writing, the major trades at 149.21, flat as Wednesday’s Asian session begins.

USD/JPY Price Forecast: Technical outlook

The daily chart suggests the USD/JPY is aimed steadily higher, though it is neutral to upward biased.

Although technical signals suggest buyers are in charge, the USD/JPY remains inside the Ichimoku Cloud (Kumo) and caps its advance. Also, despite being bullish, the Relative Strength Index (RSI) has failed to clear the latest three peaks, showing the uptrend could be overextended.

With USD/JPY climbing above 150.00, this clears the path for a move upwards to the 100-day moving average (DMA) at 150.98, ahead of the 200-DMA at 151.27.