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USDJPY pulls back from recent highs as traders take profits
The pair slid from a new three-week high after overbought momentum indicators and ongoing intervention chatter, with key support around 157.58 in focus.
USDJPY retreated from a new three-week high on Friday as traders began taking profits after a steep rally that lasted nearly two weeks, according to Action Forex.
The outlet cited overbought daily stochastic, stretched 14-day momentum, a bearish turn in RSI, and ongoing talks about possible intervention by Japanese authorities, including references to President Trump’s concerns about a weak yen.
Technical signals also pointed to risk of a bull-trap after USDJPY saw weakness and a false break of a Fibonacci barrier around 158.62.
Action Forex noted that a daily close below 157.58 is seen as the minimum requirement to keep bearish momentum alive, with potential downside toward the 156.80 to 157.0 zone.