USDJPY still above key support at old ceiling area
The USDJPY has experienced upward movement, reaching towards an earlier identified topside target at the 100-hour moving average (MA) located at 151.435. Despite this ascent, sellers present at the MA level have successfully resisted further gains by the buyers. During the US trading session, the pair peaked at 151.419, slightly below the 100-hour MA, showcasing the stiff resistance at this level. The day’s lowest price point was 151.019, narrowly above the last Friday’s corrective low of 150.997, indicating a tight trading range.
Should the pair sustain a position above 151.435, it would signify a strengthened bullish sentiment among traders. Conversely, a dip below 150.997 could tilt the market sentiment towards bearishness.
Notably, the pair made a significant move during the Asian session by surpassing both the 2023 high of 151.91 and the 2022 high of 151.945, marking the highest level since 1990. However, the peak was short-lived, only reaching 151.967, indicating a minimal break above these highs before experiencing a pullback.
The re-engagement of the previous highs, along with today’s peak, suggests a volatile trading environment. A further descent will not only require breaking below the 151.00 mark but also navigating through the significant resistance zone formed between February and early March, spanning 150.718 to 150.88. This area encompasses the 100-hour MA and the 38.2% retracement of the rise from the March 18 low at 150.796. Unless the price falls below this critical zone, the bearish momentum is considered insufficient to overturn the current buyer-dominated market dynamic. The buyers would still be in full control.