USD/JPY Hits New Multi-Decade High Despite Persistent Intervention Threats and Overbought Conditions

On Jul 1, 2024

USD/JPY rose further on Monday, signaling a continuation after bulls paused for consolidation on Thursday and Friday.

Despite traders remaining cautious due to looming intervention threats from Japanese authorities, who reiterated their stance on supporting the weakening yen, bulls are holding their ground for now.

The fresh strength hit the highest level since October 1986 and is on track for a daily close above the 161 level, which would bolster the bullish stance, boosted by strong monthly gains in June.

Bulls are eyeing targets at 162.00/16 (round figure / 123.6% Fibonacci extension of the uptrend from the 151.85 higher low) and may extend towards 163.38 (138.2% Fibonacci extension). However, strongly overbought daily studies and ongoing intervention talks will keep traders on alert.

Immediate supports are at 161.00 and 160.19/00, followed by a pivot at 159.50 (daily Tenkan-sen).

Res: 162.00; 162.16; 163.38; 164.00
Sup: 161.00; 160.19; 160.00; 159.50