Technical Analysis – USDJPY stabilizes a tad below 160.00
USDJPY jumps to its highest level since April 1990
A suspected Japanese intervention does not have meaningful impact
Oscillators exhibit a divergence regarding overbought conditions
USDJPY has been in a steady uptrend since the beginning of the year, posting a fresh 34-year high on Monday. After a roller coaster session that day following speculation over a Japanese intervention, the pair experienced a strong sell off before recouping a significant part of its losses.
Should bullish pressures persist, the price could challenge could 159.10, which is the 161.8% Fibonacci extension of the 151.90-140.24 downleg. Further upside attempts could then come to a halt at the recent 34-year peak of 160.20. Conquering this barricade, the bulls may attack the 200.0% Fibo of 163.55.
On the flipside, if the pair comes under selling pressure, immediate support could be found at the 138.2% Fibo of 156.35. Failing to halt there, the price could descend towards the 123.6% Fibo of 154.64, a region that put a stop to the price’s decline on Monday. Lower, the November 2023 high of 151.90 could prove to be the next barrier for the bears to overcome.
In brief, despite a potential intervention by Japanese authorities on Monday, USDJPY remains under buying pressure. Hence, the outcome of a re-test of the 160.00 handle could decide the pair’s future.
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