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USD/JPY renews its northbound journey in the European session after breaking the closely watched 95 line yesterday. The pair is now at 95.60, fresh multi-year highs.USDJPY Rising to new multi year highs towards the Non Farm Payrolls Long Squeeze Coming March 8 2013

The next resistance line is at 95.88, which was a peak during June 2009. It is followed by 96.88. However, the Non-Farm Payrolls mayhem could be an opportunity to take profits. The pair might temporarily fall no matter what outcome we’ll see.

At least until the next BOJ meeting, the general direction of USD/JPY seems up: Japanese rhetoric remains strong and the improvement in the US economy helps the dollar. However, at some point the new governor of the BOJ will have to match rhetoric with deeds.

Here is a guide to the next big levels of USD/JPY.

In the much shorter term, the fresh rise of USD/JPY could come to an abrupt end, as the choppiness and lack of liquidity around the Non-Farm Payrolls could be an opportunity to squeeze longs. This could be a big bump in the road

Japanese officials didn’t really respond to the new levels. It is important to note that 95 was mentioned quite a few times: either as a target or as part of a range: 90-95 or 95-100. They are probably hiding their smiles.

For more on the pair, see the USD/JPY forecast.