USD/JPY advances to key 100.00 resistance level
James Chen November 14, 2013 3:34 PM
<p>USD/JPY (daily chart) has advanced to hit its key 100.00-level resistance target in early trading Thursday, establishing a two-month high for the pair. This occurs […]</p>
USD/JPY (daily chart) has advanced to hit its key 100.00-level resistance target in early trading Thursday, establishing a two-month high for the pair. This occurs within a trading range consolidation that extends back to the multi-year high of 103.72 that was reached in May. Since that high, the pair has formed a large triangle pattern with diminishing volatility, as was reinforced by the convergence of the 50-day and 200-day moving averages.
Price action broke out of that triangle just one week ago, with its primary near-term objective at the 100.00 psychological level. Having just reached 100.00, the pair is at a critical juncture. If it is able to make a strong upside breach, bullish momentum could push the pair back up towards its long-term highs around the 103.00 level. A turn back down from 100.00 would likely prolong the current trading range environment, with key support once again around the 97.00 price region need to see a break out outside of this consolidation phase in order to see new highs or lows and find a more definitive price trend.
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