The USDJPY pair is once again trading higher, challenging the high set on October 21, 2022. Recent events have injected bullish momentum into the market as intervention risks loom. With the pair comfortably above the 150 mark, the potential for intervention from Japanese authorities is increasing.
In terms of momentum indicators, the Average Directional Movement Index (ADX) is indicating a weak bullish trend, while the Relative Strength Index (RSI) remains above the midpoint but without significant upward movement. The stochastic oscillator is currently in overbought territory, suggesting a potential pullback in the near future.
Bulls are eyeing a break above the October 21, 2022 high, with a potential target of 155. This could trigger a response from Japanese officials and increase the likelihood of market intervention. On the other hand, bears are looking to regain control and push the pair back below the October 3, 2023 high towards key support levels.
A move below the 146.65-147.71 range could signal a shift in momentum, as it includes important Fibonacci retracement levels and moving averages. The outcome of this battle between bulls and bears will ultimately determine the next direction for USDJPY.
The USDJPY market is currently at a crucial juncture, with both bulls and bears vying for control. The outcome of this struggle will have significant implications for the future direction of the pair. With intervention risks looming and momentum indicators hinting at a potential pullback, traders should closely monitor key levels to gauge the market sentiment accurately.
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