The USDJPY continues to inch higher after breaking above a topside trend line earlier in the day.
The pair is also up for the 11th consecutive day 149.228. The current underside of the topside trend line comes in at 149.61. At a minimum, getting below that trend line and staying below is a requirement if the sellers are to have any sort of control. Absent that and traders may instinctively lean against the 150.00 natural resistance level “just because” but when the market trends higher for 11 consecutive days, selling against a high is by definition a losing proposition in the medium and long term.
As a result, not expect stops (or traders exiting shorts) on a break above the 150.00 level as traders feel the squeeze in the short term.
The wild card is the Bank of Japan potential intervention of course. They have warned against one way speculative trading. As each day goes by when the price moves higher, that increases the chance for some sort of action.
