USD/JPY consolidates below new seven-year high
James Chen March 16, 2015 6:25 PM
<p>USD/JPY (daily chart shown below) has traded in a tight consolidation since rising to touch its 122.00 target last week, which established a new seven-year […]</p>
USD/JPY (daily chart shown below) has traded in a tight consolidation since rising to touch its 122.00 target last week, which established a new seven-year high.
This high surpassed the previous long-term high of 121.83 that was hit in early December of last year. Prior to that, not since mid-2007 have these heights been reached.
In February, the currency pair broke out above a large triangle consolidation pattern, extending the bullish trend that has been in place since late 2012.
Having now pulled back modestly and consolidated its recent gains after hitting the 122.00 upside resistance target last week, USD/JPY could be poised to extend its bullish momentum.
The overall trend and technical indications for the currency pair remain strong. Any sustained break above 122.00 should target the 124.00 level as the next major resistance objective to the upside.
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