USD/JPY unstoppable, at highest level since August 1990 above 148.40
- Japanese yen continues its decline across the board.
- USD/JPY at levels not seen since 1990, approaches 150.00.
- Intervention is unlikely over the next hours but Monday is another story.
The USD/JPY rose further during the American session and printed a fresh 32-year high around the 148.50 area. US economic data showed increased inflation expectations and boosted the pair further.
The University of Michigan Consumer Confidence report showed an increase in long-term inflation expectation from 2.7% to 2.9%, triggering a new run in US yields that weighed on the Japanese yen.
No matter what, USD/JPY keeps going up
The USD/JPY is about to post the ninth weekly gain in a row. Since mid-August, it has risen by more than 1500 pips and there are no signs of stopping. Neither the intervention from the Bank of Japan/Finance Minister nor the threats of more action alleviated the bearish pressure.
The divergence between the ultra-accommodative Bank of Japan and the tightening from the Federal Reserve (and many more central banks) is being ratified daily, leading to an everyday gain in USD/JPY.
No intervention seems likely over the following hours, even as the USD/JPY approaches 150.00. On Monday, the story could be a different one.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
