USD/JPY continues advance near long-term highs

<p>January 8, 2014 – USD/JPY (daily chart) is currently advancing very close to its new five-year high of 105.43, which was established just a few […]</p>

January 8, 2014 – USD/JPY (daily chart) is currently advancing very close to its new five-year high of 105.43, which was established just a few days ago, in the very beginning of the year.

USD JPY chart - 08.01.14


That high occurred in the midst of a strong and steady bullish trend that has been in place since the currency pair broke out above its previous triangle consolidation in November – extending the sharp uptrend that has been in place since September 2012.

The past few months of this yen-weakening run have seen USD/JPY advance to break out above several key price levels; including the 100.00 psychological level and the 103.70 previous long-term high (May 2013).

105.00 had been the former upside price target, and was just reached in late December.

After having just made a shallow pullback, the pair appears poised to advance even further. On a breakout above the noted 105.43 high, a major upside resistance target resides around the important 108.00 level.

Downside support tentatively continues to reside around the 103.70 price region.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.