The pair is now moving up to 150.70 as the dollar is pressing higher amid a softer mood in equities while bond yields are continuing to stay underpinned on the day. That is the highest levels since 1990 for USD/JPY as the shackles are coming undone.
The highs seen back in 1990 were at 160.40 so that leaves plenty of room to roam to the upside for the pair as the fundamental outlook remains unchanged. The only thing to be mindful about is intervention by Japanese officials but they’d also have to be wary considering how markets know that all the factors dictate that the path of least resistance is still for a move higher in the pair.
At this point, it will take some form of pivot by the BOJ to really save the yen. Otherwise, it’s hard to imagine how traders are not going to try and punish the narrative.