USD/JPY continued to power through 161 this morning. This is the highest level since 1986, FX strategist at OCBC Christopher Wong notes. 

JPY intervention seems inevitable

“There are expectations that Japanese authorities could soon intervene. While the level of Japanese Yen (JPY) is one factor to consider, officials do focus on the pace of depreciation as the intent of intervention is to curb excessive volatility.”

“As such, the path of least resistance for USD/JPY may still be to the upside, for now. Pair was last at 160.65. Bullish momentum on daily chart intact while RSI in in overbought conditions. Next resistance at 161.20 (138.2% fibo projection of 2023 low to 2023), 164 levels. Support at 157.70 (21 DMA), 156.60 (50 DMA).”