Yen Soars as BoJ Hints at Rate Hike in September

The Japanese yen has extended its gains and reached the highest level in over six months. The USDJPY pair accelerated lower at the start of the week, falling by over 1% on Monday as it attempted to resume a sharp decline from last week's brief pause on Friday.

The yen was boosted by the Bank of Japan's (BoJ) hawkish shift in rhetoric, which signals a potential rate hike in September. Economists expect a 25 basis points increase, but there is also speculation about a 50 basis points rise.

Today's break below the key 155.20 support zone, which consists of lows from August 3 and September 3-4, has generated a negative signal for bearish continuation on the daily chart. The currency pair must fall below 154.78 to validate this signal and expose targets at 152.00 and 150.92.

Daily studies are in full bearish configuration with an oversold reading that may provide headwinds, as well as significant support from the top of the rising daily cloud at 154.26.