The ongoing improvement in the US and mostly the expectations from the new BOJ governor push the pair higher. Will we see a continuation?
Here is the recent technical analysis from James Chen: USD/JPY Hits New Long-Term High for Potential Uptrend Continuation.
The 95 level was cited by quite a few Japanese officials as a target, or as part of a range: 90 to 95 or 95 to 100. This is the highest level since August 2009 – a 42 month high.
If the break is confirmed, the next level is minor: 95.88, which was a peak in mid-2009. Above this line, 97.80 was a swing high in 2009 and serves as important resistance.
98.90 was a peak in June 2009 and is also strong. It’s followed by 99.60, just before the even rounder number of 100: another digit for the pair.
On the downside, the previous high of 94.46 serves as support, followed by 93.84. For more levels and analysis, see the USDJPY forecast.
The BOJ just made its last rate decision under the old regime of Shirakawa. The next decision will already be made by Koruda, which will begin his term as BOJ governor on March 19th, if there aren’t any major surprises.
Japan still needs to attach deeds to words. Otherwise the pair could drop quickly on any new risk event, as we’ve seen with the Italian elections.Get the 5 most predictable currency pairs