USD/JPY touches 151.60 as it eyes the 32-year high

<p>USD/JPY has risen every day this week and is now within striking distance of some major levels.</p><p>The 32-year high in this pair came in October of last year at 151.94 and was followed by intervention from the Japanese Ministry of Finance and a fall all the way to 128.00 within three months. Since then it's marched back higher and rose to 151.74 last week before backing off briefly.</p><p>Now as the week winds down we are within striking distance of both those levels, which will be key ones to watch next week.</p><p>What's ominous is that the rally has come even with yields falling. US 10-year yields are at 4.62% from a high of 5.04% three weeks ago. US 2-year yields are also down 20 basis points from the cycle high.</p><p>I have a hard time envisioning any scenario that doesn't involve the MoF being tested once again. They may need ot let the 152.00 level go but right here the risk-reward is tough because they could intervene at any time. I think we ultimately get to 155.00 but the trade is to buy a dip not chase a break because even if the top goes, buyers will tread carefully.</p>

This article was written by Adam Button at www.forexlive.com.