USDJPY hits resistance at key level; 50% midpoint at swing area

The USDJPY stretched to a swing high of 154.79. Earlier today in a post, I wrote:

The next key target lies in the 154.77–154.967 zone, where the 50% midpoint of the 2025 trading range sits at 154.897. This level, situated within the swing area (see red numbered circles), could act as a resistance zone where some profit-taking or a temporary pause may occur.

The price reached the low of the area and stalled. The current price is at 154.42.

With the swing area stalling the rally, that increases the areas importance today and going forward. On the downside, the sellers near the highs today would love to see the 38.2% re-broken at 153.959. Get below that and it would signal disappointment on the move higher and we should see the sellers taking back more control.

Having said that, today’s run higher did move back above the 100 and 200 day MAs too. Those levels come in at 152.72 to 152.88. As a result it is not surprising that buyers above that level today, were very happy to sell at 154.79 less than 24 hours later.

This article was written by Greg Michalowski at www.forexlive.com.