USD/JPY pulls back towards December low

<p>USD/JPY (daily chart shown below) has pulled back sharply below the prior 118.00 support level to hit a low approaching 116.00 on Wednesday. This pullback […]</p>

USD/JPY (daily chart shown below) has pulled back sharply below the prior 118.00 support level to hit a low approaching 116.00 on Wednesday.

This pullback occurs after the currency pair staged a rebound towards the end of 2014 from a prior pullback to the 115.50-area support low in mid-December.

Currently approaching December’s 115.50-area low once again, USD/JPY has declined by around 5% from the seven-year high of 121.83 that was established in early December.

 

USD JPY technical chart 14.01.15

 

While the current pullback is significant, the currency pair is still trading within a longer-term bullish trend that extends back to late 2012 and which accelerated in the second half of last year.

With major support currently residing around the noted 115.50 level, any extension of the pullback below that level should meet further key support around 114.50.

To the upside, in the event of a rebound and recovery of the bullish trend, USD/JPY should target its 122.00 resistance objective once again.

 

 

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