Traders retest key moving averages after a brief pullback, with yen weakness driving the pair toward 2024 highs.
USD/JPY climbed to 161.90 after a volatile session, recovering from a dip below 160.70 ahead of the US jobs report. The pair briefly breached 2024 highs last week before cautious positioning ahead of non-farm payrolls tempered momentum.
The drop on Thursday saw the pair fall below key hourly moving averages, shifting sentiment bearish before dip buyers re-entered. Resistance at the 100- and 200-hour moving averages (161.84-92) now tests bullish resolve, with a break above signaling renewed upside.
With the jobs report out of the way, focus returns to yen intervention risks. Tokyo’s potential response remains the dominant driver, though the path of least resistance still favors further yen weakness.