USDJPY Near Possible ExtremesUSD/JPYOANDA:USDJPYcrossresearchUSDJPY has officially taken out the 2024 highs, clearing a major liquidity pool that has been sitting above the market for over a year. From a pure price action perspective, that liquidity objective has now been achieved. The current reading using our deviation indicator is not yet at statistical extremes, but it has entered what I consider a high-probability reversal zone. This doesn't automatically imply an immediate short, but it does suggest that the risk/reward is becoming increasingly unfavorable for chasing longs at these levels. Technical observations • 2024 highs have been successfully swept, removing a significant source of buy-side liquidity. • Price is testing a major multi-year resistance area. • The Deviation Indicator remains below its extreme threshold but is already inside the upper reversal zone, where mean reversion risk begins to increase. • Until the indicator reaches true statistical extremes, continuation remains possible, but upside momentum should be monitored closely for signs of exhaustion. Macro backdrop: The technical setup aligns with an increasingly sensitive macro environment. Recent reports indicate that Japanese authorities are moving away from publicly signaling intervention levels, instead favoring surprise intervention to catch speculative short-yen positioning off guard. At the same time, the Bank of Japan continues to maintain relatively hawkish rhetoric regarding yen weakness. That doesn't mean intervention is imminent, but it does mean traders should recognize that headline risk increases as USDJPY trades deeper into historically elevated levels. To also watch out for today's NFP data. Instead, we are watching for: Rejection or exhaustion around the breakout. Low risk entries as opportunities are here but we can still get better levels. Momentum divergence. The Deviation Indicator reaching a true statistical extreme.