Technical Analysis of USDJPY
In the latest analysis of the USDJPY currency pair, key technical indicators suggest a pivotal moment for traders. The pair experienced a dip during the early Asian session, primarily due to broad dollar selling influenced by recent news regarding divisions within the Federal Reserve. However, this decline was met with significant buying interest, leading to a rebound.
Key Technical Levels
- Support Level: The USDJPY found support at the rising 100-hour moving average, which has been a crucial technical indicator for maintaining bullish momentum.
- Resistance Level: The next significant resistance is identified at the 38.2% Fibonacci retracement level of the decline from the 2025 high, located at 147.135. This level is just below the recent weekly high of 147.175.
- Potential Breakout: A successful break above the 38.2% retracement could lead to a retest of the June high at 148.02, with further potential towards the swing area between 148.56 and 148.72.
Market Sentiment
Despite the initial selling pressure, the buyers have managed to maintain control, as evidenced by the support at the 100-hour moving average. The ability of buyers to sustain a break above the 38.2% retracement level will be critical in determining the near-term direction of the USDJPY. If they fail to do so, it could invite sellers back into the market, shifting the tone to a more neutral stance.
Conclusion
Traders should closely monitor the USDJPY for potential breakout opportunities above the key resistance levels while being aware of the support provided by the 100-hour moving average. The upcoming sessions will be crucial in establishing whether the bullish momentum can continue or if a reversal is imminent.