USDJPY outlook: Key levels to watch after pullback

December 23, 2024 at 02:33PM
The USD/JPY moved lower on Friday after reaching its highest level since July 18, 2024. The pair hit a high of 157.92, entering a key swing area on the daily chart between 157.665 and 158.419, but momentum failed to hold. The release of lower-than-expected PCE data on Friday contributed to the decline.

As the price approached the December 20 swing high at 155.88, the decline slowed, with the session low reaching 155.94. Holding above this level emphasizes its importance as a key support going into the new trading week. Remaining above 155.88 would favor buyers, while a break below could trigger additional selling pressure.

The pair closed Friday at 156.375. In today’s trading, USD/JPY has moved higher, reclaiming the November 15 high at 156.739, which now serves as a near-term support level. A more conservative support level remains at 155.88.

On the upside, the next targets are the lower bound of the swing area at 157.665, last week’s high at 157.918, and the upper bound of the swing area at 158.420.

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