USDJPY is establishing above psychological 150 barrier after registering a first daily close above this level in one year on Tuesday.
Fresh rise of the dollar on growing signals that interest rates would remain elevated for some time, prompted investors out of riskier assets and pushed the pair’s price above 150, after the price was capped here for the most of October, on persisting fears that break higher would trigger intervention of Japan’s authorities.
However, dollar’s strong bullish bias persists on prospects of higher for longer interest rates, causing possibility of intervention to fade, as the action, in current circumstances, likely won’t provide desired results.
Therefore, the pair may extend advance (weekly close above 150 is required to confirm positive signal) and challenge Fibo expansion levels at 150.82 (123.6%), 151.23 (138.2%) and key barrier at 151.94 (Oct 2022 multi-decade peak / near FE 161.8%).
Broken 150 barrier is reinforced by 10DMA and reverted to solid support which should ideally contain and guard lower pivot at 149.00 (daily Kijun-sen), loss of which would put bulls on hold and signal a false break higher.
Res: 150.77; 151.23; 151.56; 151.94.
Sup: 150.00; 149.49; 149.00; 148.77.
