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The USD/JPY pair has surged past last week's high of 159.337, reaching 159.35, driven by a breakout above its 100-hour moving average (MA) at 159.008. Sellers attempted to push the price below the 100-hour MA at the start of the week but failed to sustain momentum. The inability to breach the 200-hour MA at 158.875 kept buyers in control, with the 100-hour MA breakout reinforcing the bullish bias. Traders now target the next key resistance zone between 159.70 and 159.96, which acted as a ceiling in April. A successful push through this area could open the door to 160.44 and the April high of 160.717.
This price action is critical for forex traders, particularly those with exposure to USD/JPY. The 100-hour MA and 200-hour MA levels serve as pivotal technical indicators, and their interaction determines short-term momentum. A sustained move above 159.337 signals strong buyer control, while a retreat below these levels could trigger a reversal. The pair's performance will also influence broader forex market sentiment, especially in the Gulf where USD/JPY is a frequently traded cross.
For MENA investors, the USD/JPY's trajectory reflects global risk appetite and Yen carry trade dynamics. A continued bullish trend may attract more speculative buying, but traders should monitor the 159.70-159.96 zone closely. If buyers fail to hold above 159.337, the pair could retest the 158.875 level, offering potential short-term trading opportunities. Key watchpoints include the 100-hour MA and the April resistance cluster.
