USDJPY higher on the day and trying to hold swing area support
The USDJPY is trading higher on the day, extending further above its 100-hour and 200-hour moving averages at 161.83 and 161.98, respectively. The rally has also carried the pair above the former 40-year high from 2024 near 161.95, an important technical level that should now be viewed as support. Today's low reached 162.07, just above that breakout point, where buyers stepped in once again.
That makes 161.95 the key level to watch. As long as the price remains above it, the technical bias favors the buyers. A move back below would represent a failed breakout and likely disappoint bullish traders looking for a continuation higher, opening the door for deeper downside momentum.
On the topside, the pair pushed above a prior swing resistance zone between 162.40 and 162.51, reaching a session high of 162.70. The price has since pulled back into that former resistance area, which is now being tested as support. If buyers can defend this zone, the next upside targets are today's high at 162.70, followed by last week's 40-year high at 162.83. A break above that record level would strengthen the bullish outlook and signal the potential for another leg higher.
Overall, the rebound has been impressive considering last week's sharp reversal. After posting a fresh 40-year high at 162.83, USDJPY tumbled to a low of 160.45 during that tumble. However, the recovery is now in its fourth consecutive day and has nearly retraced the entire decline, highlighting persistent buying interest.
That said, traders should remain mindful of the ever-present risk of comments or intervention from Japanese officials. For that reason, having a well-defined risk level is essential. For me, that level is 161.95. Stay above it, and the buyers remain in control. Move back below it, and the technical picture shifts back in favor of the sellers.
This article was written by fl932d6e52a19643278e0f123bca7198f5 at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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