Technical Analysis

Breakout or Reversal? USDJPY tests 3-Year highs and triggers sellers

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The USDJPY bumped against three-year highs this week on both Wednesday and Friday, and found willing sellers each time. The high on Wednesday reached 151.81. The high today reached 151.85. That compares to the 2022 high at 151.95, and the 2023 high at 151.91. So over the last three years, the swing highs are within 10 pips of each other. That’s a ceiling.

Having said that ceilings are meant to be broken. If it happens, it would take the USDJPY to the highest level since 1990 over 30+ years ago.

What would give the sellers more confidence?

The swing highs from February into early March peaked between 150.71 and 150.88. If the sellers are to take more control, getting and staying below that lower ceiling would be needed to increase the bearish bias. Absent that and the sellers are not winning. The buyers are still in firm control.

In the video above, I outline the technicals for the USDJPY in more detail as you prepare for the new trading week.

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