BoJ Hawkish Shift Boosts Japanese Yen to Six-Month High

The Japanese yen has continued its upward trend, reaching its highest level in over six months. The USD/JPY pair accelerated lower at the start of the week, attempting to resume a sharp fall from last week.

The yen's gains can be attributed to the first intervention in late July and the recent shift in the Bank of Japan's (BoJ) rhetoric, which signals a rate hike in September. Most economists expect a 25 basis points increase, but some also anticipate a 50 basis points rise.

The key support zone at 155.20 has been broken, generating a negative signal for bearish continuation on the daily chart. A break below 154.78 would validate this signal and expose targets at 152.00 and 150.92.