The USDJPY surged to a fresh multi-decade peak following robust US CPI figures, sparking speculation about potential intervention.

USDJPY is currently consolidating near a new multi-decade high, hovering above the 153 mark, propelled by a robust 1% surge following stronger-than-anticipated US inflation data.

A potential breakout beyond the narrow two-week range signals a continuation of the bullish momentum from its recent climb from 146.48 (March 11 low), setting sights on targets at 154.66 (Fibonacci 123.6% projection) and 155.75 (1990 peak).

However, caution is warranted as indicators across larger timeframes indicate strong overbought conditions, suggesting a potential profit-taking scenario. Additionally, market sentiment remains cautious amid speculation of Japanese authorities intervening to bolster the weakening yen, albeit without immediate urgency, opting for a strategic timing.

The former range tops around the 152.00 zone, supported by the rising 10-day moving average, serve as significant support levels, maintaining a bullish bias and shielding against downside risks.

Traders should exercise caution regarding a dip below the range floor, particularly around the 151.00 zone, which could escalate to a test of the psychological support at 150 and beyond