Dollar/yen finally breaks the cycle high of 114.37, trading at a new high of 114.46. Is this move for real? It is still awaiting confirmation. In any case,
In any case, the pair extends its rise along the steep uptrend support line. The next high is 115.35, which was the high level in March. Beyond that point, 116 and 117 are the next caps.
To the downside, we find 113.50, followed by 112.75.
The Bank of Japan continues buying Japanese bonds with newly created money. The Federal Reserve has recently raised rates and intends to begin reducing its balance sheet later this year.
Monetary policy divergence takes its toll on the yen and the authorities in Tokyo are probably delighted.
Here is how it looks on the chart:
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