USD/JPY attempts advance from support line
James Chen May 2, 2014 9:17 PM
<p>USD/JPY (daily chart shown below) is once again attempting to rise from a key support trend line that extends back to the 93.77 low in […]</p>
USD/JPY (daily chart shown below) is once again attempting to rise from a key support trend line that extends back to the 93.77 low in mid-2013.
Friday’s climb that occurred early in the US session can largely be attributed to the better-than-expected jobs report from the US Labor Department.
USD/JPY has essentially been in a general consolidation since the beginning of the year, although it’s been well-supported by both the noted trend line as well as the key 200-day moving average.
Having followed a steadily rising trend line for almost a year, despite the recent consolidation, USD/JPY has struggled to continue the general bullish trend that has been in place since 2012.
The currency pair continues to hold above its 200-day moving average and fluctuate around its 50-day moving average.
If price can maintain its support base, it should once again look to target higher highs.
Upside resistance targets currently reside around 103.75 and then the five-year high of 105.43 that was hit at the very beginning of this year.
A move above that high would confirm an uptrend continuation, with a longer-term upside target around 108.00.