USD/JPY resumes rebound after correction
James Chen October 23, 2014 7:46 PM
<p>USD/JPY (daily chart shown below) has resumed its rebound after having corrected to the downside and hitting a key support low within the past three […]</p>
USD/JPY (daily chart shown below) has resumed its rebound after having corrected to the downside and hitting a key support low within the past three weeks.
The downside correction followed a sharp advance from mid-July to early October that reached a six-year high slightly above the 110.00 handle.
From that high, the currency pair took an equally sharp dive that prompted more than a 4% decline within two weeks, which represented around a 50% retracement of the noted prior advance.
The low of 105.18 that was hit last week was just slightly below its major support target around the 105.40 price area, the last major high hit in the beginning of 2014.
Currently, the rebound from that low has prompted USD/JPY to climb back up around the 108.00 resistance level. Further upside momentum on this rebound above the key 108.00 level should once again target a re-test of the 110.00-area multi-year high.
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