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The USDJPY pair has surged past its 2024 high near 161.95/97, with strong buying momentum confirming the former resistance level as new support. After reaching 162.399 and retreating, buyers re-entered near 162.04, pushing the pair to a fresh high of 162.508 before another pullback. The price has since rebounded above 162.30, maintaining bullish control. Technical analysis highlights the 164.50 level (November 1986 high) as the next major target, with sustained movement above this level potentially triggering further gains. Key support levels at 161.92-162.04 and moving averages (161.87/161.66) are critical for maintaining the bullish trend.
For traders, the USDJPY's sustained momentum above key support levels signals a strong bullish bias. Breaks above 164.50 could attract more buyers, while failures to hold above 161.92 may reverse the trend. The pair's behavior reflects broader USD strength against the JPY, influenced by divergent monetary policies between the US and Japan. Traders should monitor central bank statements and global risk appetite for potential shifts in momentum.
The current squeeze in USDJPY suggests a high probability of continued gains unless critical support levels are breached. Gulf investors should watch for interventions by Japanese authorities, which could trigger sharp corrections. The 100-hour and 200-hour moving averages will act as dynamic support, and their integrity is crucial for maintaining the bullish outlook. Key events to track include BoJ and Fed policy updates, which could impact USD/JPY dynamics.
