USD/JPY traded sideways on Thursday, holding above critical support at 152.04 as firmer U.S. Treasury yields countered earlier weakness. The rebound was aided by stronger-than-expected U.S. PPI data and a rise in weekly jobless claims, which highlighted mixed signals in the U.S. economy. The market appears focused on next week’s key central bank meetings, with the Fed widely expected to cut rates by 25 basis points. Meanwhile, reports suggesting the BOJ is leaning toward holding rates steady have dampened yen demand, contributing to USD/JPY’s resilience above its pivot.

Technical analysis indicates a consolidation phase, with USD/JPY supported at 152.04 (200-DMA), 151.66 (cloud top), and the 152 psychological pivot. Resistance is clustered at 152.71-84, marked by the 50% Fibonacci retracement of the 156.76-148.65 decline and the week’s high. A break above 153.15 (weekly cloud top) could reinvigorate bullish sentiment, while a drop below 151.66 would signal increased downside risk. The pair’s current doji formation and alignment near the 21-day Bollinger Band midpoint reflect market indecision ahead of key events.

Traders will monitor Friday’s Q4 Tankan report and next week’s central bank meetings for directional cues. The yen’s seasonal weakness and broader reflationary trends have kept it defensive, but sentiment could shift if the Fed signals caution or if Japanese policymakers hint at future tightening. For now, USD/JPY appears confined to a range, with a break of 151.66-153.15 likely needed to set the next trend.