USD/JPY Bullish Trend Corrects to Key 88.00 Support

<p>USD/JPY (daily chart) as of January 23, 2013 has pulled back down to the key 88.00 support area after having reached a 30-month high at […]</p>

USD/JPY (daily chart) as of January 23, 2013 has pulled back down to the key 88.00 support area after having reached a 30-month high at 90.23 on Monday. This pullback follows another pullback to 88.00 that occurred one week ago. These minor corrections have taken place within the context of an exceptionally steep bullish trend that had its beginnings around the 77.00 level in mid-September 2012, and which accelerated substantially in mid-November.

Since then, the pair has taken a steep stair-step ascent that broke out above successive resistance levels, finally moving towards the important 90.00 level. After correcting back to 88.00 support, price could correct further on any significant breakdown below 88.00, with further potential support to the downside around the 85.50 level. To the upside, 90.00 remains the major potential resistance level to watch within the still-intact bullish trend. In the event of another breakout and daily close above 90.00, confirming a continuation of the uptrend, price could move towards further potential resistance to the upside around the 92.00 and then 95.00 levels.

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