As we’ve highlighted in multiple videos and articles dating back to the end of Q1 2022, USD/JPY has been the currency pair that has been in the cleanest and steepest uptrend.
While some might see that trend exhausting, we pose the question as to whether the move higher is actually accelerating?
The latter actually looks more likely. If you look at the price action patterns on the Daily, Weekly and Monthly charts, all show USD/JPY repeating a familiar pattern of touching a new high, retracing downward, then coiling in a sideways consolidation pattern before rocketing higher!
USD/JPY appears to once again to be in the latter phrase of this pattern as it tightly consolidates just below the 136.00 level.
A break higher would be put the pair in striking distance of 140.00. Given the acceleration and pace of how far the pair has run so far in 2022, it is not inconceivable that we would then be speaking about the 150.00 level as a target before year end.
Start considering early on that 2023 trip to Tokyo!