• USD/JPY rises from a two-day low of 148.85, gaining strength amid dip-buying and risk-on sentiment.
• The pair remains within the Ichimoku Cloud, signaling neutral-to-upward bias but suggesting the uptrend could be overextended.
• A break above 150.00 could target the 100-DMA at 150.98, while 149.00 provides key short-term support for bulls.

The US Dollar prints solid gains of more than 0.30% against the Japanese Yen after the pair dropped to a two-day low of 148.85, yet buyers bought the dip and push the exchange rate higher. Although US Treasury bond yields dropped, the USD/JPY trades at 149.71, above its opening price.

USD/JPY Price Forecast: Technical outlook

The daily chart suggests that USD/JPY is on a steady upward trajectory, though it maintains a neutral-to-upward bias. While technical signals indicate that buyers are in control, USD/JPY remains within the Ichimoku Cloud (Kumo), which is limiting its advance. Additionally, despite bullish conditions, the Relative Strength Index (RSI) has failed to surpass its last three peaks, indicating that the uptrend could be overextended.

If USD/JPY rises above 150.00, it could pave the way for a move towards the 100-day moving average (DMA) at 150.98, followed by the 200-DMA at 151.27.