USD/JPY closes above 145 - NFP now in focus

USD/JPY finally closed above 145 for the first time in 24 years. Given we saw the MOF (Ministry of Finance) intervene around 145.9 then the potential for the BOJ or MOF to jawbone (if not intervene) may be high. However, traders remain aware that it will take a coordinated intervention to turn this trend around, which is why prices simply drifted back to the highs when the MOF intervened in September. And until we see any sort of intervention, price action remains king. Take note that the MOF last intervened around 145.90, so maret may become twitchy the closer we get to that level.

An inverted head and shoulders pattern has formed on the USD/JPY 1-hour chart, which projects a target around 146.2. With the dollar looking strong ahead of today's NFP report, perhaps we'll see another leg higher ahead of the key Nonfarm report.

The trend remains bullish and we would consider bullish setups above the broken neckline, with the initial target being the highs around 145.35 and the daily R1 pivot.