USD/JPY unstoppable, at highest level since August 1990 above 148.40

• Japanese yen continues its decline across the board.
• USD/JPY at levels not seen since 1990, approaches 150.00.
• Intervention is unlikely over the next hours but Monday is another story.

The USD/JPY rose further during the American session and printed a fresh 32-year high around the 148.50 area. US economic data showed increased inflation expectations and boosted the pair further.

The University of Michigan Consumer Confidence report showed an increase in long-term inflation expectation from 2.7% to 2.9%, triggering a new run in US yields that weighed on the Japanese yen.

No matter what, USD/JPY keeps going up

The USD/JPY is about to post the ninth weekly gain in a row. Since mid-August, it has risen by more than 1500 pips and there are no signs of stopping. Neither the intervention from the Bank of Japan/Finance Minister nor the threats of more action alleviated the bearish pressure.

The divergence between the ultra-accommodative Bank of Japan and the tightening from the Federal Reserve (and many more central banks) is being ratified daily, leading to an everyday gain in USD/JPY.

No intervention seems likely over the following hours, even as the USD/JPY approaches 150.00. On Monday, the story could be a different one.

Technical levels