USD/JPY advances from trading range

<p>USD/JPY (daily chart) has continued to push higher after having hit and exceeded its 100.00 price objective. In doing so, the currency pair has tentatively […]</p>

USD/JPY (daily chart) has continued to push higher after having hit and exceeded its 100.00 price objective. In doing so, the currency pair has tentatively emerged from its five-month trading range consolidation, which can also be considered a large triangle pattern.

The current advance provides an indication of what may become a continuation of the bullish trend that has been in place since September 2012. An uptrend continuation would clearly be confirmed on a breakout above the 103.72 multi-year high, which was established in May.

Having broken out above the triangle consolidation pattern and the major 100.00 barrier, USD/JPY could now be poised to target the 103.00 resistance level and then a re-test of the noted 103.72 multi-year high.

Key downside support now resides around the 99.00 level.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.