USD/JPY consolidates gains after hitting 12-year high

<p>June 1, 2015 – USD/JPY (daily chart shown below) has begun to consolidate its recent gains after reaching its original upside target last week by […]</p>

June 1, 2015 – USD/JPY (daily chart shown below) has begun to consolidate its recent gains after reaching its original upside target last week by hitting and surpassing the major 124.00 objective and establishing a new 12-year high.

This milestone at 124.00 was hit after the currency pair broke out earlier last week above its previous target of 122.00, an exceptionally significant prior resistance level.

 

USD JPY chart 01.06.15

 

A recent resurgence in US dollar strength has led to the current extreme levels. The breakout above 122.00 last week confirmed a continuation of the long-standing bullish trend since 2012, after a prolonged sideways consolidation for the past five months.

Having risen to such high levels in a short period of time, USD/JPY should soon be due for a pullback, with key downside support on this potential pullback residing around the noted 122.00 level.

While this short-term pullback may soon be due, the currency pair clearly remains within a strong bullish trend, and the next major upside target on any further continuation of this trend resides around the key 126.00 resistance level.

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