USDJPY 2024 highs moved back into focus on Thursday after the pair climbed to 161.76, its highest level of the current cycle and close to the 2024 peak at 161.919.
A move above 161.919 would take the pair to its highest level since 1986, according to the source article. The latest rise also pushed USDJPY nearly 200 pips above 160.00. As a result, traders who had bet against the move faced growing pressure.
USDJPY 2024 Highs Draw Closer
Earlier this year, fears of intervention by Japanese officials drove a sharp drop in the pair. In late April and early May, USDJPY fell from 160.717 to about 155.017 as traders worried authorities would step in to support the yen. Since then, however, the pair has recovered steadily.
Traders had still shown caution about driving the pair above the 2026 highs because intervention risks had not gone away. That restraint faded on Thursday. Consequently, the break to fresh highs added to upward momentum and forced short positions to reassess.
Short Squeeze Gains Pace
The source article said the rally is starting to look more like a short squeeze. Traders who had held to the view that Japanese authorities would not allow USDJPY to stay above 160.00 for long now face a stronger trend. Meanwhile, the pair keeps setting new highs.
The risk of intervention remains, and officials could still try to push the pair lower. However, the market’s move higher has made that bearish stance harder to hold. For many short sellers, the latest advance may force a decision on whether to keep fighting the trend.
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