The USDJPY recently hit new intraday and multi-week highs, entering a swing zone that previously capped gains in early May (145.92-146.25). The pair is very close to the 61.8% retracement level at 146.148, which is often a key point for market corrections. Recent pullbacks have attracted buyers near the previous day’s high of 145.76. This pattern indicates a bullish market where small dips are seen as buying chances. A drop below this support level and the 50% midpoint of the May range at 145.375 could shift market momentum. However, the current trend hints at a possible rise above 146.24, leading to further increases.

Key Levels For USDJPY

Key levels for USDJPY are vital to watch. Resistance is at 146.148, with the 61.8% retracement and swing-zone top at 146.25. Support levels include the previous highs and short-term floor at 145.76, additional support at 145.375 for the 50% May range, and further support at 145.15, representing the 100-hour moving average. We’ve reached levels not seen since early May. Prices are reacting where past sellers showed interest. The ongoing buying—especially after every dip—suggests that the market remains strong. The fact that buyers keep stepping in above 145.76 daily shows that the market is tilted towards strength. Traders aren’t waiting for significant pullbacks. Instead, smaller pauses are quickly bought up—often before prices test wider support below.

Market Dynamics And Momentum

The 61.8% retracement at 146.148 can act as a barrier. When prices consistently hold above this level, the next movement tends to extend further than expected. However, it might not happen immediately. There may be days when prices hover just below these levels, almost inviting more participants or shaking off hesitant traders before moving on. We have tested close to 146.25 without much selling pressure, lacking the rejection seen previously. This changes the market’s dynamics. These zones become stronger only when the market respects them. If we continue to move through intraday without pullbacks, we are unlikely to stay below for long. However, if we falter and the area near 145.76 doesn’t attract buyers, the next support will fall to 145.375. This isn’t just a number; it’s the midpoint from a broader retracement and represents the balance of the past month. Dropping below this would take us back to price levels that haven’t supported higher bids—an unfavorable situation. Our focus is on the short-term direction from how prices react just under the recent highs. If upside momentum pauses and shows indecisiveness, that may indicate a need to adjust our short-term bias. As long as dips are seen as buying opportunities, the potential for higher prices remains. Trading volume may decrease into the weekend, but thin trading can still break through technical levels easily, especially if we’re just below a key resistance like 146.25. Pay attention to how these levels behave with low liquidity, especially at the start of next week. If defensive trades set up below 145.76 and follow through beyond 145.375, we may start to question the strength of this upward move. If momentum continues, we could see targets move to higher retracement levels not reached since April, with only minor pullbacks meriting attention. Stay light unless the move fails twice; then defensive trades are more likely to hold. Create your live VT Markets account and start trading now.

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