USDJPY rotates lower after testing 2024 high and highest level going back to 1986
The USDJPY extended its rally in early North American trading, pushing above last week’s high and reaching 161.92—just shy of the April 2024 high at 161.94. That level proved to be a formidable barrier, with buyers unable to sustain the breakout attempt and the pair quickly rotating lower. A move above 161.94 would take USDJPY to its highest level since late 1986, nearly 40 years ago.
The pullback saw the pair slide to 161.09, where buyers stepped back in. For sellers to gain more control, the price needs to break below and remain under the rising 100-hour moving average, currently at 160.94. A deeper decline would then target the rising 200-hour moving average at 160.61, another key technical support level.
The successful defense of the 2024 high gives sellers some encouragement and raises the risk of a larger corrective move. However, the burden remains on the bears. Until they can push the pair below its key moving averages and keep it there, the broader uptrend remains firmly in the buyers’ favor.
This article was written by Greg Michalowski at investinglive.com.