- October 22, 2025
- Posted by: EWGFX
- Category: Technical analysis
The USDJPY pair rebounded strongly from the 200-hour moving average, with buyers maintaining firm control of the market.
After the appointment of Prime Minister Sanae Takaichi in Japan, traders interpreted her policy stance as supportive of continued monetary easing and fiscal stimulus, sparking a sharp rally in the yen pair. This shift triggered a decisive breakout from recent consolidation, propelling USDJPY above the 100-hour MA (150.79) — a key resistance area that had capped gains earlier in the week.
The move extended further, driving price action through the 200-hour MA at 151.48, a significant technical level that now acts as near-term support. The bullish momentum carried the pair up to 152.11, a notable swing high and structural resistance zone, where heavy profit-taking emerged.
The ensuing pullback reflects a natural market correction as sellers defend the 152.11 area, while attention now shifts to whether buyers can hold the line at 151.48.
- For buyers (bulls): As long as price remains above 151.48, the short-term bullish structure stays intact. This level represents a key defense zone, with many traders expected to protect long positions around it.
- For sellers (bears): A clear break and close below 151.48 would suggest a deeper retracement, potentially signaling a short-term shift in momentum. Sellers are likely targeting that confirmation before pressing further downside.
In summary, USDJPY has defined a tight technical battleground between 151.48 support and 152.11 resistance — a high-stakes range that could determine the next directional breakout for the pair.