USD/JPY continues recovery to approach key 100.00 resistance
James Chen July 1, 2013 8:43 PM
<p>USD/JPY (daily chart) has continued its sharp recovery of the past two weeks to approach major resistance around the key 100.00 figure on Monday. This […]</p>
USD/JPY (daily chart) has continued its sharp recovery of the past two weeks to approach major resistance around the key 100.00 figure on Monday. This partial recovery follows a substantial bearish correction that occurred from late May to mid-June, which brought the price down from its multi-year high of 103.72 in May to 93.77 in June. The price turned back up at the June low, which also coincided with the 38.2% Fibonacci retracement level of the entire bullish trend.
While the recent bearish correction appeared deep, it was a rather shallow one within the context of the larger trend. Now bumping up against key 100.00 resistance once again, the strong uptrend continues to assert itself, placing the pair at a critical juncture. A significant breakout above 100.00 would confirm the bullish recovery, with upside price objectives around 103.00 and then a retest of the noted May 103.72 high. A major resistance target further to the upside is the 105.00 level.