USD/JPY Tests Critical 152 Resistance
23 October 2024
In today's technical analysis, we focus on the American Dollar to Japanese Yen (USD/JPY), which is currently testing an absolutely key resistance level. This resistance zone, around 152, is critical, as it has played a pivotal role in the past. If we look at the chart, it was a major resistance in October 2022, again in October 2023, and now, as we move through October 2024, we find ourselves at this crucial juncture once more.
Since the middle of September, the pair has been bouncing higher, with a strong bullish momentum driving the price towards this significant resistance. The long-term sentiment remains clearly positive, but this zone is crucial for both buyers and sellers. For the bulls, this is an important spot to take profits, while for the bears, it's an ideal level to try and initiate a bearish correction.
As it stands, the bullish momentum seems quite strong, with buyers pushing the price toward a potential breakout. If the price manages to break through this resistance and closes the day above the 152 mark, it would confirm a buy signal and show that the bullish trend has serious strength and commitment behind it.
However, caution is advised, as this is also an ideal spot for a reversal pattern to emerge. If we see patterns like a shooting star or a bearish engulfing candle, it would be a signal that sellers are stepping in, and it could open the door for short positions. Therefore, traders should watch this level closely for confirmation of either a breakout or a potential reversal.