USD/JPY stalls at 161.95- is that the top once again?

Yesterday the USD/JPY matched the high seen back in 2024, when it peaked at 161.95, before the BOJ stepped in and smashed it below 140. Well, that was the exact high seen yesterday. The prospect of this setting a major double top on the charts is clear to see, but yet to be confirmed of course. The latest inflation data out of Japan this morning has seen Tokyo region CPI rise above forecasts and above the previous reading of 1.6%. Tokyo CPI rose by 1.9% in June. 

That has not duly impacted the USD/JPY very much and neither has the slide in the Nikkei 225 yet today, but we should not be complacent about that. Look, this is a tough call right now, because that 161.95 level in the USD/JPY might be the zenith, but it could so easily still be a target for the markets to aim at and surpass. It really is in the balance. What we are concerned about right now though, is the volatility in the Nikkei and if that is met with BOJ and MOF action in the currency once again. 

The USD/JPY range today has been covered by 161.60 and 161.85. The dollar had closed in the US last night at 161.79. It is currently trading at 161.65