USDJPY 2024 high capped the pair after it climbed to 161.92 in early North American trading and then turned lower.
The pair moved above last week’s high during the rally. However, buyers could not hold the break near the April 2024 peak at 161.94. The move then reversed, and USDJPY fell to 161.09 before buyers returned.
A break above 161.94 would have pushed the pair to its highest level since late 1986. Instead, the failed test of the USDJPY 2024 high gave sellers some support. Even so, the source said sellers still need a stronger move to take control.
USDJPY 2024 High Holds Firm
For now, traders are watching the rising 100-hour moving average at 160.94. If the pair drops below that level and stays there, sellers would gain more control. Additionally, that move would open the way for a deeper pullback.
The next downside level stands at the rising 200-hour moving average at 160.61. That area marks another key support point. Therefore, sellers need to break both moving averages to shift the near-term picture.
Key Support Levels Come Into Focus
The source said the defense of the 2024 peak raises the risk of a larger corrective move. However, the broader uptrend still favors buyers unless sellers can force the pair below those key averages and keep it there. Meanwhile, the rebound from 161.09 showed that buyers were still active after the pullback.
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