Japanese authorities may intervene as USDJPY rose to 32-year high
The USDJPY is consolidating under new 32-year high (148.85), following strong bullish acceleration last Friday, which broke and closed above key barrier at 147.68 (1998 peak).
The pair advanced 2.3% last week (the biggest weekly rally since the last week of May) extending steep ascend into ninth straight week.
The dollar remains well supported on signs that the Fed is expected to keep its strong hawkish stance and possibly increase the pace of policy tightening in coming months, as well as safe-haven flows on growing economic and geopolitical uncertainty.
Bulls eye targets at 149.32/150.00 (Fibo 161.8% projection of the upleg from Sep 22 trough (140.36 / psychological), where strong headwinds are expected, as daily and weekly studies are strongly overbought and Japanese authorities may intervene again to support sharply falling yen.
According to the limited reaction on the last intervention (Sep 22) and no substantial changes in fundamentals expected, potential intervention would likely provide better levels to re-enter strongly bullish market.
Res: 148.85; 149.32; 150.00; 151.43
Sup: 148.42; 147.68; 147.07; 146.22