USDJPY climbs above 156 as the Bank of Japan maintains interest rates
USDJPY reached a new 34-year high on Friday, driven by the Bank of Japan’s decision to keep its ultra-low interest rates unchanged and the lack of clear guidance on the timing of the next rate hike, which further weakened the yen.
On Friday, there was a fresh surge past the 156.00 mark, reaching the highest level since 1990 (156.82 so far), after exceeding the target at 156.36 (Fibonacci 138.2% projection of the upward move from 140.25).
The pair is poised to extend its steep rally for the sixth consecutive week. A weekly close above the previous pivot at 155.00 and a monthly close above the key Fibonacci barrier at 152.60 (38.2% of the broader downtrend from 277.65 to 75.55) would confirm a strong bullish signal and pave the way toward the psychological 160 barrier.
Overbought conditions could slow down the rally, but limited pullbacks (ideally contained around 155.00 support, reinforced by the 10DMA) may offer new buying opportunities.
A dip below 155.00 warrants caution, though the overall bias is expected to remain bullish as long as the price stays above the broken Fibonacci barrier at 152.60, which has now turned into a pivotal support level.
