Early in the European session, the Japanese Yen (USD/JPY) is trading around 149.70, above the 21 SMA, and approaching 8/8 Murray, which coincides with the psychological level of 150.00. This zone could act as a strong resistance so that USD/JPY could face a strong rejection. Hence, a technical correction could occur from that point.

Yesterday in light of the US inflation data, the Yen moved above the 21 SMA, breaking the 149.00 level. We can see that USD/JPY covered the GAP that it left at the beginning of the week. Now the instrument is expected to consolidate below 150.00 in the next few hours which could be seen as an opportunity to sell.

In case the Japanese Yen breaks and consolidates above 150.00, we could expect it to continue rising and USD/JPY could reach +1/8 Murray around 151.56

Given that the JPY is showing signs of exhaustion, a good opportunity would be to sell at the current price levels around 149.80 or wait for a rejection around 150.00 to sell with targets at 149.04 (21 SMA) and 147.86 (200 EMA).