The USDJPY is seeing no let up in the USDJPYs run to the upside. The pair after the US CPI search above the high prices from 2022, 2023 and 2024 between 151.91 and 151.967. The high price is currently trading at a new session high at 152.93, nearly 100 pips from the old highs. The price is also trading at the highest level going back to June 1990.
Today the high price extended above the July 1990 high of 152.25. Keep that level in mind
Looking at the hourly chart above, close/short-term risk area would be the 38.2 – 50% retracement of the surge to the upside today. That area comes between 152.351 and 152.488. If the trend is to remain firmly in the hands of the buyers, staying above the 50% of the last trend move keeps those buyers in control. That level is also close to the July 1990 high at 152.25.
Absent a better idea for risk, that is my close support level for traders. A more conservative risk level would be the old 2022-2024 high ceiling at 151.91 to 151.94.
It is a one-way street to the upside for the USDJPY. When that happens the buyers are in full control, and the sellers have to wrestle some control back to be taken seriously. Without breaking below even the closest of technical levels – like the 38.2-50% of the trend move higher – the sellers are not winning. The buyers are in full control.
This article was written by Greg Michalowski at www.forexlive.com. Source