USD/JPY breaks out of consolidation
James Chen October 10, 2013 10:09 PM
<p>USD/JPY (daily chart) has advanced to break out tentatively above a falling wedge pattern consolidation that has been in place since the 100.60 high in […]</p>
USD/JPY (daily chart) has advanced to break out tentatively above a falling wedge pattern consolidation that has been in place since the 100.60 high in mid-September. This pattern, in turn, is the latest component of a prolonged sideways trading range that has been in place for the past four months, after the multi-year high of 103.72 was established in May. Early this week, the price dipped below support at 97.00, but has since recovered in its current advance. In making the tentative breakout above the wedge pattern, the pair has also reached back up to the 200-day moving average after having recently dropped below it for the first time since November 2012. If the pair can stay above 97.00 and sustain the upside momentum off the current advance, the key upside objectives remain at the 100.00 psychological level followed by the 103.00 region, both within the current trading range.
StoneX Financial Ltd (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.