USD/JPY recently reached a peak at 151.97, according to analysts at BBH who assess the pair’s future prospects.
A Breakout for USD/JPY is Imminent
Japan’s Finance Minister Shunichi Suzuki has issued a warning, stating, “We are closely monitoring market movements with great urgency…We will take decisive actions against excessive fluctuations, considering all available options.” The last time the Bank of Japan (BoJ) intervened officially to curb the yen’s strength was between September and October 2022.
In our perspective, it’s only a matter of time before USD/JPY experiences an upward breakout, as we anticipate a gradual tightening process by the BoJ and a Federal Reserve easing cycle that is less aggressive than currently anticipated.
Following the 151.95-152.00 range, the next significant technical hurdle for USD/JPY won’t come until 160.00, last seen in April 1990.
