USDJPY has shown a steady uptrend since March, with the pair trading just below the 152.00 level. This level, which was protected by Japanese authorities in 2022, has acted as a key resistance point. The momentum indicators are approaching overbought conditions, indicating a potential slowdown in the uptrend. Despite the recent surge to a 34-year high of 151.95, the pair has been trading flat in the near-term.
Potential Price Movements
If bullish pressures persist, USDJPY may retest the 34-year peak of 151.95 and potentially move higher towards the 153.00 round number. Further upside attempts could face resistance at 154.64, the 123.6% Fibonacci extension level. On the flip side, a pullback could find support at 150.87, with additional strong support at the 78.6% Fibonacci level of 149.40. A violation of these support levels could lead to further downside movement towards the 61.8% Fibonacci level of 147.44.
Trading Range and Potential Correction
USDJPY has been stuck within the 151.00-152.00 range, with bullish momentum appearing hesitant to push the pair above the 2022 intervention zone. The repeated failure to break above this zone raises the question of whether a downside correction could be on the horizon. Traders should monitor key support and resistance levels closely to gauge the potential direction of the pair in the coming days.
The USDJPY market has shown signs of a steady uptrend but is facing resistance at key levels. The momentum indicators suggest a potential slowdown in the uptrend, while the trading range indicates a lack of bullish conviction above the intervention zone. Traders should exercise caution and stay vigilant for any signs of a reversal or correction in the USDJPY pair.
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