Traders eye 100- and 200-hour moving averages as critical resistance after USDJPY plunges over 500 pips from recent highs.
The USDJPY pair fell sharply from a Friday high of 160.885 to a Monday low of 155.219 before staging a corrective rebound. The move marked one of the largest short-term declines in recent weeks, driven by heightened volatility in the currency market.
Technical levels, including the 100- and 200-hour moving averages and Fibonacci retracements, are now in focus as traders assess potential resistance. The 200-bar moving average on shorter-term charts repeatedly capped the rebound, signaling persistent selling pressure. Support emerged near 156.22, aligning with an earlier swing low.
Analysts note that intraday charts, such as the 5-minute timeframe, provide clearer signals amid rapid price swings. The market’s reaction to these levels will help define near-term trends and risk parameters for traders.