Warning of Strong Intervention Issued as USDJPY Surges to New Multi-Decade High

During the Asian session on Wednesday, USDJPY climbed to a slightly higher multi-decade high of 151.97, indicating a persistent bullish trend as the US dollar gained momentum from favorable US data released on Tuesday.

The bullish momentum is supported by positive technical indicators and a substantial interest rate gap between the US and Japan. The breach of the crucial 150.90/151.00 zone suggests potential for further upward movement.

However, Japanese Financial Minister issued a stern warning this morning, echoing previous statements made prior to the intervention in October 2022. He emphasized the government’s readiness to take decisive action against excessive weakening of the yen, sparking speculations of imminent intervention to stabilize the yen’s decline.

Initial support levels are identified at 151.00, followed by the ascending 10-day moving average at 150.60, the psychological barrier at 150.00, and the upper boundary of the thick daily cloud at 149.15.

Res: 151.97; 152.56; 153.00; 154.65

Sup: 151.00; 150.60; 150.00; 149.66