USD/JPY range trades off highs

<p>USD/JPY (daily chart shown below) has continued for the past two weeks to range trade and consolidate off its multi-year highs. This consolidation occurs after […]</p>

USD/JPY (daily chart shown below) has continued for the past two weeks to range trade and consolidate off its multi-year highs. This consolidation occurs after the currency pair broke out above a large triangle pattern that extends back to December’s seven-year high of 121.83.

That triangle breakout two weeks ago pushed USD/JPY above its 120.00 resistance target to a high of 120.46 before swiftly retreating and falling into the current consolidation.

The currency pair continues to trade within a long-term bullish trend that extends back to late 2012 and accelerated in the second half of last year.

USD/JPY daily chart

 

Despite its current range trading, the overall trend and technical indications for USD/JPY remain strong, and price action could be poised for an impending breakout of the consolidation.

With key support currently residing around 118.00, any breakout and sustained price move back above 120.00 should target the 122.00 resistance level once again, with a further upside target around 124.00.

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