USD/JPY maintains pullback from highs

<p>USD/JPY (daily chart shown below) has maintained its pullback from the 122.00 high hit two weeks ago. This pullback was significantly exacerbated by last week’s […]</p>

USD/JPY (daily chart shown below) has maintained its pullback from the 122.00 high hit two weeks ago. This pullback was significantly exacerbated by last week’s Fed meeting and the resulting US dollar plunge.

That 122.00 high that was reached two weeks ago marked a new seven-year high for the currency pair, slightly surpassing December’s 121.83 extreme. Prior to that, not since mid-2007 have these heights been reached.

The pullback that resulted from the noted Fed meeting last week brought USD/JPY down to hit its key 50-day moving average before bouncing.

2015-03-23-USDJPY-dailychart

 

While the overall uptrend remains firmly intact, a further pullback or correction could potentially weigh down the currency pair in the short-term.

Any break below the noted 50-day moving average could prompt bearish momentum back down towards the 118.00 and then 115.50 support levels.

To the upside, on any rebound from the current pullback, a break above 122.00 should target the 124.00 level as the next major resistance objective to the upside.

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