Can you say squeeze? The pair is breaking out to its highest levels in six months now as it runs up to 141.45 to start European morning trade. There isn't much news or headlines to have triggered such a run, so perhaps it is based on the charts that we are seeing how and why price action is behaving this way.
There was a triangle pattern forming in the pair over the past few weeks and it seems like buyers are running with a breakout on that today, now that the risk of the Fed meeting decision is out of the way.
Or is this some form of position play ahead of the BOJ decision tomorrow? That's a tough one to answer for now.
In any case, the charts are your best friend in times like these and right now buyers are well in control with a more bullish bias.
The next plausible technical target is the 21-22 November highs around 142.25 next and a break above that could see an extension towards the 145.00 mark. On the latter, there is the risk of intervention by Japanese authorities to consider.
