USDJPY has given a weekly close above 156.75 last week and closed at 157.25. This implies a technical breakout towards testing July’24 highs of 161 levels. 156.75 was a very crucial levels as it was not only the 76.4% retracement of the entire move from 161 levels to 140 levels, it was also the 6 monthly top made in Nov’24. Fundamentally also JPY has not much triggers to correct from here. With BOJ rate hike in 24th Jan meeting being only priced to the extent of 40% currently, JPY might see another depreciation leg towards 160 odd levels mirroring CNH move towards 7.45 levels. Summary: LONG USDJPY at CMP 157.25, TP 160.15 & SL 154.35
