USDJPY moved to a new 2023 high (and November 2022 high) and reached just above the key swing area on the daily chart (see video above for an outline of this level) at 144.98 and natural resistance at 145.00. However, the high price could only reach 145.066 before turning to the downside. The market was overboard on the daily chart.

Looking at the hourly chart connecting the highs of Tuesday and Thursday, it has targeted the 145.06 level (see red numbered circles on chart below and video). Sellers leaned on this level and the price started to fall. The overbought situation began to be avoided (see video from yesterday “I know. I know. I know. USDJPY is overbought, but how do you trade it?”).

What’s next?

Watch the video above to hear my thoughts and explanation for “why”.