This pair is now at a level not seen since 2008, which reflects the challenges that Europe has faced since then. This situation underscores the significant impact of interest rate differentials, as the ECB continues to raise rates while the Bank of Japan maintains its current rate at -0.10%.
Now after the close above 150.00, it has opened the way for further gains up to 165.00. However, this would require strong economic resilience in Europe, along with a moderation in inflation that would not raise concerns about central banks overreacting. It would also require the Bank of Japan to maintain its Yield Curve Control (YCC) policy.