Title: USD/JPY Hits Fresh Highs as Bullish Momentum Strengthens
Original Author: Greg Michalowski
Source: InvestingLive.com
Original Article Link: https://investinglive.com/technical-analysis/usdjpy-runs-to-a-new-high-with-the-price-extending-above-the-next-target-20250731/
Date: [Assumed Published in July 2024]
The USD/JPY currency pair extended its rally recently, reaching new highs and breaking through key technical levels. As upward momentum continues to drive the pair higher, market participants are closely watching chart patterns and resistance levels for clues on where the pair may head next. In his analysis, Greg Michalowski of InvestingLive.com highlights the pair’s strong bullish trajectory, emphasizing various significant resistance targets and how current price action fits within the broader technical framework.
This expanded commentary builds upon Michalowski’s key points, offering an in-depth, 1000-word review of the USD/JPY movement, technical indicators, support pivots, and implications for traders.
Current Price Action Overview
The USD/JPY pair surged to a fresh high, adding more gains and showing a strong bullish tone. The upward movement followed earlier gains through important levels of resistance, including the previous high from April 29, 2024, at 160.208. That level proved to be an important technical barrier in recent months, and its clear break has reinvigorated bullish sentiment in this currency pair.
At the latest peak, USD/JPY traded above 160.778, extending bullish control with minimal corrective pullback. The session’s high touched 160.858, surpassing the latest short-term upside targets and feeding into a strong continuation trend. For traders, this suggests that the buyers remain firmly in control, and the path of least resistance likely continues to point higher in the near term.
Key Technical Levels Highlighted
Michalowski identifies several key technical levels traders should monitor in the USD/JPY rally, as they may offer clues regarding potential reversal points or areas of resistance:
• Previous High (April 29, 2024): 160.208
- This level served as significant resistance. Its break signaled a continuation of the uptrend.
- Now acts potentially as a downside support on corrections.
• Next Minor Target: 160.778
- This level was reached and surpassed, emphasizing the persistent upside pressure.
- Indicates buyers are not done pushing the pair higher.
• Current Session High: 160.858
- The day’s high is critical. A break above this could target additional round-number milestones.
• Psychological Resistance: 161.00
- Although not touched at the time of reporting, 161.00 is likely to be a psychological resistance — a round number attracting attention.
- Moves above this level could trigger further stops and continuation buying.
Recent Price Action and Momentum Indicators
The recent price movement reflects a persistent trend higher, with only modest dips during the run-up. Each retracement has been shallow, implying that buyers are aggressive and dips continue to be viewed as buying opportunities rather than reversal setups.
An analysis of momentum can be summarized as follows:
• Price Action: The bullish candles are long and mostly unbroken by retracements. This tone aligns with aggressive buying.
• Moving Averages: On the daily and hourly time frames, the moving averages (particularly 50-hour and 200-hour) remain well below current pricing, indicating extended but still healthy bullish divergence.
• Volume Analysis: Although volume is not always available in Forex spot markets, liquidity remains robust as USD/JPY is one of the most traded pairs globally. Crossing major resistance tends to ignite volume spikes from algorithmic traders and institutional order flow.
Traders should be cautious about potential overbought conditions. However, as with strong trends, markets often remain overbought longer than
Explore this further here: USD/JPY trading.