Anna 
The USD/JPY pair continues its upward trajectory, propelled by market dynamics despite Japan’s authorities issuing hollow threats thus far. The recent Bank of Japan (BoJ) meeting had the potential to signal concerns about the yen’s weakness, but instead, the central bank reiterated a cautious approach tied to data and the achievement of the 2% inflation target.
Analyzing the weekly chart, it’s evident that market participants swiftly embraced long positions in USD/JPY, especially after upbeat US PCE (Personal Consumption Expenditures) data surpassed expectations. As Japan heads into its Golden Week holiday period, authorities are likely uneasy given the lower liquidity typical of this time. The potential for FX intervention increases as the pair climbs higher, with authorities possibly considering large-scale USD sales to curb yen weakness.
Previously, the 155.00 level acted as a crucial support level, but now, attention shifts to the approaching 160.00 mark. The pair is currently testing channel resistance, underscoring the growing momentum towards higher levels.
The USD/JPY’s bullish trajectory reflects evolving market sentiment and potential intervention risks as authorities monitor the yen’s depreciation. As the pair nears critical resistance levels, the market’s response and central bank actions during the holiday period will be key indicators of future price movements.
