USD/JPY rebounded today, tracking USD’s modest bounce after back-to-back session of declines. USD/JPY was last at 151.87 levels, Danske Bank's FX analyst Mohamad Al-Saraf reports.

Consolidation likely in the interim

"Daily momentum is flat while RSI rose slightly. Consolidation likely in the interim. Resistance at 152.70 (200 DMA), 153.50/85 levels (21, 100 DMAs) and 154.30 levels. Support at 151.50 (38.2% fibo retracement of Sep low to Jan high), 150 levels."

"Elsewhere, tariff concerns remain to some extent as reciprocal tariffs may affect Japan. This can prove tricky for JPY’s near-term outlook though we also noted that Japan is attempting to seek exemptions with regards to Trump’s proposed reciprocal tariffs."

"Ministry of Foreign Affairs Takeshi Iwaya also raised the issue of automobile tariffs and sought exclusion from the 25% tariff on imported steel and aluminium products at the Munich Security Conference last Friday."