USD/JPY consolidates near 151.20 during the European session on Wednesday, pulling back from the recent yearly high of 151.72 reached on Tuesday. The pair surged after the Bank of Japan (BoJ) scrapped the 1% ceiling for the 10-year government bond yield. The immediate support at 151.00 comes into play, with the 21-day Exponential Moving Average (EMA) at 149.76 serving as the next support level. A decisive break below the latter could open the door for USD/JPY bears to target the 23.6% Fibonacci retracement around 148.28.

The unexpected decrease in China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) could contribute to the pressure on the Japanese Yen (JPY). The report printed a figure of 49.5 in October, falling below the expected 50.8 and September’s expansion at 50.6. The Moving Average Convergence Divergence (MACD) line’s position above the centerline and the signal line suggests a potential bullish momentum. Furthermore, the 14-day Relative Strength Index (RSI) above the 50 level indicates a favorable market sentiment, supporting the notion of bullish momentum for the USD/JPY pair. On the upside, the USD/JPY could face resistance near the highs marked in October 2022 at 151.94, which is lined up with a 152.00 psychological level.