USDJPY is likely heading higher.
I examine the long-term support and resistance zones in combination with news headlines. So far, we've seen headlines about JPY reaching 90s levels, but we are not far from stronger headlines such as 80s and 70s.
Using a contrarian's approach, and considering that retail traders continue to be overly short USDJPY, I believe it will continue to rise towards stronger resistance levels around 165 at first.
BoJ does not seem to have a clear policy on how to handle this depreciation and I don't believe the issue will go away on its own. Inability to take action from BoJ's side means that funds will continue to sell yen.
Even, if my theory is wrong, in the short-term, USDJPY still stands above major bullish trendlines and the momentum remains strong.
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