USD/JPY Price Forecast: Bullish pin bar faces 200-day SMA wall

The USD/JPY currency pair experienced a slight decline of 0.20% following the results of the US midterm elections. Although the pair displayed a tilted bullish 'pin bar', it remained confined within the 50- and 200-day simple moving averages (SMAs) of 157.39 and 158.62, respectively. As of the current moment, the USD/JPY is trading at 158.41.

The currency pair remains in a state of subdued movement, with no clear direction in sight. The market structure is characterized by lower highs and lower lows, yet if the pair manages to reclaim the level of 159.00, the next target could be the 100-day SMA at 159.16, with traders keeping an eye on a potential test of the 160.00 level.

From a momentum standpoint, such a move seems unlikely to materialize. Although the Relative Strength Index (RSI) suggests a bullish sentiment, it is displaying a downward trajectory. If USD/JPY manages to break above the 160.00 level, it could potentially overturn the bearish market structure following the September 2 high of 160.39.

Conversely, for a bearish continuation, sellers need to push the USD/JPY below 158.00 and break the 50-day SMA at 157.39. A breach of this latter level would expose the 157.00 level, with sellers targeting the October 23 low of 156.08. The accompanying table displays the percentage change of the Japanese Yen against various major currencies in today's trading session, highlighting the strength of the Yen against the US Dollar.