USD/JPY continues ascending trend channel after failing to break above 145.
144.95 may continue to offer resistance as it is the 161.8% Fibonacci Extension of the late July pullback from 139.39 to 130.39.
The currency pair was tested a few times recently, with peaks at 144.97 and 144.99; the latter is a 24-year high. This area, 144.99, could be pivotal for the next big move in USD/JPY.
The Bank of Japan made calls to banks in Tokyo asking for a rate check in a bid to reach 145. The market has interpreted this move to mean that the central bank could be looking to intervene should the price get above 145.
If they fail to intervene if the price exceeds the area, an aggressive move might be seen. The ascending trend line that currently dissects at 145.90 could be the next potential resistance level to monitor.
The low since the peak at 141.50 may provide support and has provided the base of the 2-week range of 141.50 – 145. A break of this consolidating range might provide a directional indicator.
Should the yen continue to weaken, how high will USD/JPY and EUR/JPY go?