USD/JPY Hits New Long-Term High for Potential Uptrend Continuation

<p>USD/JPY (daily chart) as of March 7, 2013 has broken out above its long-term high of 94.44 set in mid-February, establishing a new 34-month high […]</p>

USD/JPY (daily chart) as of March 7, 2013 has broken out above its long-term high of 94.44 set in mid-February, establishing a new 34-month high for the pair. This renewed bullishness has been in place for the past week after price made a minor pullback in late February slightly below the 91.00 level. This also occurs within the context of a strong and steep bullish trend that has been in place for the past five months. During the course of this bullish trend there has still been very little in the way of significant pullbacks or corrections.

Although the noted late-February pullback broke below key 92.00 support, it was far from a major correction, and did not pose any real threat to the integrity of the entrenched uptrend. Currently, price is approaching its key upside target around the 95.00 resistance area. In the further event of a strong breakout above that level, the next major resistance objective to the upside resides around the 98.00 level. To the downside, key support continues to reside around 92.00.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.