The USD is moving to new highs. A technical look at some of the major currency pairs

USDJPY Breaks New Highs

The U.S. dollar is pushing stronger, particularly led by USDJPY which is up 0.55%, setting a bullish tone for the FX market. USDJPY has broken above the January 2025 high at 158.86 and has surpassed the key swing zone between 158.55 and 158.86. This action signals confidence among buyers. Earlier today, the market successfully tested the lower edge of this swing zone, providing a green light for further upward movement. This swing area now serves as the risk level for long positions; maintaining this level allows the bullish bias to continue.

Next Target at 160.00

If the price continues to rise, the next upside target is the psychological 160.00 level. This level is critical for market sentiment, and a break above it could indicate further gains. It’s essential to monitor reactions in the 158.55 to 158.86 swing zone as movements unfold. While GBPUSD shows heightened seller momentum, the outlook remains bullish for USDJPY. Attention to other currency pairs will also be needed in this environment.