The USD/JPY is touching new long-term highs, and technical traders who are considering direction may feel as if they are looking into the clouds for answers.
The yen is a popular asset during turbulent times.
The USD/JPY has continued its higher move in early trading today, following in the footsteps from the previous few days. Sustained trading above the 124.000 level the past week has spurred on the belief the USD/JPY could actually propel further upwards and challenge values it has not fully embraced since 2015. The USD/JPY did approach the 125.000 mark temporarily on the 28th of March, but the past hours have seen the Forex pair break this resistance and become more emboldened.
As of this writing, the USD/JPY is traversing near the 125.450 level and traders may want to use seatbelts to securely position themselves while trying to speculate today. The last time the USD/JPY has traded at these heights was in June of 2015. Long-term charts need to be called upon by technical traders to gauge the landscape and consider where the USD/JPY will trade next. In early morning trading today, the USD/JPY did approach the 125.750 level before being slightly pushed back.
The ability of the USD/JPY to break past highs seen in late March, and sustain the loftier heights now being tested may make financial houses suspect new record highs can be achieved sooner rather than later. Yes, the USD/JPY has traded within this ‘landscape’ before, but to put it into perspective the USD/JPY traded above the 126.000 juncture in April of 2022. Folks, this means the last time the USD/JPY traded highs above the 126.000 mode was twenty years ago. The sky must be searched by technical traders when looking at the loftier highs.
Speculators who are brave enough to swim the current volatile waters of the USD/JPY should use all of their risk-taking tactics in a razor sharp fashion. Conditions are likely to remain fast and volatile. It will be essential to monitor the USD/JPY carefully, and use entry price orders to step into the Forex pair without risking a sudden spike delivering a starting point in a trade that was unexpected. However, the intriguing thing is that the higher ground now being churned by the USD/JPY is actually producing rather stable prices.
Meaning the USD/JPY may in fact have the ability to go higher from its current levels. If current resistance near the 125.550 to 125.600 levels becomes vulnerable, there may be a suspicion the 125.750 mark will be challenged again. If the 125.750 mark crumbles, traders may want to target the idea that 126.000 may be seen in the short term. Stop losses are highly urged for USD/JPY traders today.
Current Resistance: 125.800
Current Support: 125.010
High Target: 126.060
Low Target: 124.510