The USDJPY pair surged sharply today following the change in Japanese leadership, as new Prime Minister Takaichi took office and signaled a policy stance the market interpreted as favoring continued monetary accommodation and fiscal stimulus. The reaction sparked a decisive breakout from recent consolidation, with price action vaulting above the 100-hour moving average (MA) near 150.79, which had been serving as initial resistance.
That move opened the door toward the next major technical barrier — the 200-hour MA at 151.48. The subsequent clean break above this key trend-defining level confirmed strong underlying bullish momentum. The rally accelerated from there, extending toward a well-defined resistance zone and peaking near 152.11, a notable swing high marked as a structural resistance level on the chart.
However, once tested, 152.11 attracted heavy profit-taking, prompting a corrective pullback as sellers successfully defended that area. The focus now turns to whether the 200-hour MA (151.48) — a former resistance now turned support — can hold. This level has become the immediate technical pivot for both sides of the market.
For buyers (bulls): The 151.48 level is the line in the sand. As long as price remains above it, the bullish breakout structure stays intact. Buyers will likely defend this support aggressively, with stops typically placed just below the moving average.
For sellers (bears): Traders short from the 152.11 swing high are watching for a clear break and close below 151.48 to confirm a deeper pullback. Stops for short positions would generally sit just above the 152.11 resistance zone.
In short, USDJPY has established a clear technical battleground between 151.48 support and 152.11 resistance — a tight, high-stakes range that will likely define the next directional move for the pair.
