FX.co ★ USD/JPY

The USD/JPY pair continues to move by updating its forty-year high. Traders don’t care about the risk of interventions and are ready to bet on a further sell-off of the yen. I won’t refer to the uncertainty in US–Iran relations and their inability to share the Strait of Hormuz. But the stable outlook for further Fed tightening and doubts that the Bank of Japan will maintain a similar stance can indeed play a role in the development of this endless uptrend. The next target for the bulls is the resistance level of 163.28 (Murray +1.8). I would mark 160.92 as important support, where the 20-day exponential moving average and the Kijun D1 line converge. The Relative Strength Index (RSI) has reached 77, clearly indicating overbought conditions. This highlights the strong bullish momentum and the growing risk of a correction, reducing the likelihood of a new acceleration.