USDJPY retreats from a fresh multi-decade high amid suspected market intervention

USDJPY surpassed the psychological 160 barrier and reached a new multi-decade high early Monday. This was followed by a sharp decline to the 155.00 area, possibly due to suspected market intervention.

The recent decline breached a key support zone around 155 (Friday’s low, 10DMA, and Fibo 38.2% retracement of 146.448/160.19), though it has not yet sustained a drop below this level. Holding above this zone would suggest a healthy correction and maintain the broader bullish trend for a potential upward push.

However, there is a risk of a deeper retracement as daily indicators are sharply declining and RSI/Stochastic indicators have exited overbought territory. Additionally, there are concerns about further intervention from Japanese authorities.

If the USDJPY dips further below 155.00, it should find solid support above the previously broken critical barrier at 152.60 (broken Fibo 38.2% of 277.65/75.55). This support is crucial for sustaining the broader bullish trend, with a monthly close above it being necessary for confirmation.

On the other hand, a decisive break below this level could signal a temporary peak and pave the way for a deeper correction.

Res: 156.89; 157.23; 157.73; 158.43

Sup: 155.00; 154.51; 153.80; 153.34