USD/JPY Breaks Resistance, Eyes Multi-Decade High

The breakout above the two-week trading range resistance near the 152.00 mark after the US Consumer Price Index (CPI) suggests a bullish stance for traders. Still, Japanese Yen remains weakened by the BoJ’s uncertain outlook about future rate hikes.

Although, the Relative Strength Index (RSI) on the daily chart has come down slightly from its peak but remains in overbought territory.  It may be prudent to wait for some short-term consolidation or a small pullback before considering further bullishness, but the USD/JPY has the potential to break above the multi-decade high of around 153.25-153.30, which currently serves as an immediate barrier. A break above this level could see the pair target the psychological level of 154.00.