The USD/JPY currency pair recently refreshed multi-decade highs of ¥154.79, a move probing offers at channel resistance, taken from the high of ¥125.85. With resistance lacking here, this not only helps pave the way to test the mettle of ¥160.20 (highs from as far back as the 1990s) but also increases concerns about an intervention from the Bank of Japan (BoJ).
While bulls are still firmly at the wheel, and further upside could be seen towards the ¥160ish area, a correction and retest of neighbouring support at ¥150.80 or even the recently breached channel resistance could still play out before attempting higher terrain. Another consideration worth taking on board, of course, is the Relative Strength Index (RSI) forming early signs of negative divergence.
While bulls are still firmly at the wheel, and further upside could be seen towards the ¥160ish area, a correction and retest of neighbouring support at ¥150.80 or even the recently breached channel resistance could still play out before attempting higher terrain. Another consideration worth taking on board, of course, is the Relative Strength Index (RSI) forming early signs of negative divergence.