USDJPY Squeeze Higher Continues as Bulls Eye 164.50 Target

USDJPY Breakout Validates Bullish Bias

The USDJPY pair has extended its upward trajectory, breaching the 2024 high near 161.95/97 and sustaining buying pressure. Initial gains pushed the pair to 162.399, followed by a pullback to 162.04, which now acts as a critical support zone. Subsequent sessions saw renewed momentum, with prices climbing to 162.508 before another dip to 162.025. Buyers swiftly re-entered, propelling the pair to a fresh intraday peak of 162.656 as European markets closed.

Technical Outlook and Key Levels

From a technical standpoint, the next significant resistance lies near the November 1986 high at 164.50. A sustained break above this level could fuel further upside momentum. Conversely, a failure to hold above 161.92–162.04 would signal weakening bullish sentiment. Traders should monitor the 100-hour moving average at 161.87 and the 200-hour moving average at 161.66 as secondary support thresholds.

Market Implications

The pair's resilience underscores persistent risk-on appetite, with global investors favoring higher-yielding assets amid stable inflation dynamics and hawkish Federal Reserve signals. For Forex traders, the focus remains on maintaining long positions while respecting key technical levels. A confirmed break below 161.66 could prompt profit-taking and short-term retracement.

Risk Disclaimer: Trading involves substantial risk. Always conduct thorough analysis and manage exposure accordingly.