USDJPY - RETEST OF RESISTANCE BEFORE FURTHER FALLSymbol - USDJPY
The USD/JPY pair has disrupted the previous bullish market structure, with the U.S. dollar currently in a correction phase, which positively impacts the market. The pair is approaching a retest of the trendline that was recently broken, following a strong impulse move.
On Thursday, the Japanese yen reached a 10-week high, causing the USDJPY pair to decline to 149.50 This move is attributed to increased demand for safe-haven assets amidst escalating trade tensions, driven by U.S. President Donald Trump's aggressive tariff policies. Additionally, the yen has gained further strength, bolstered by market expectations of a potential interest rate hike by the Bank of Japan, making the currency more attractive to investors.
At present, attention is focused on the 0.5 Fibonacci retracement resistance zone at 150.95, as well as the previously broken upward support level.
Key Support Levels: 149.50, 148.64
Key Resistance Levels: 150.95, 151.40
It is likely that the price will first test the previously broken support zone, now acting as resistance between 150.95 and 151.40, before any potential decline. A false breakout of these critical Fibonacci zones could lead to further downward movement in the pair.
