Updated
Updated · continuumeconomics.com · Jul 22
Dollar-Yen Breaks 3-Week Triangle to 163.24, Targeting 164.00
Updated
Updated · continuumeconomics.com · Jul 22

Dollar-Yen Breaks 3-Week Triangle to 163.24, Targeting 164.00

3 articles · Updated · continuumeconomics.com · Jul 22

Summary

  • USD/JPY extended its breakout above the July 1 peak of 162.84, hitting a fresh 163.24 high and keeping upside pressure intact.
  • The move followed a break of a three-week triangle pattern, with technical momentum now pointing to the December 1986 high at 164.00 and then 164.95.
  • Support has been raised to the 162.50-162.00 congestion zone; a break below that area would ease the rally and shift focus to 161.28-161.00, then 160.48.
  • The latest push higher comes after the yen earlier touched a four-decade low near 163.24, prompting Japanese officials to warn of possible bold action as traders weigh BOJ tightening prospects.

Insights

Is the yen's historic collapse a verdict on US policy or a crisis of Japan's own making?
With the US-Iran war raging, is Japan's energy dependence pushing the yen toward a point of no return?