USD/JPY rises to four-month high
James Chen August 21, 2014 8:51 PM
<p>USD/JPY (daily chart shown below) rose to a high of 103.95 on Thursday, establishing more than a four-month high for the currency pair. Prior to […]</p>
USD/JPY (daily chart shown below) rose to a high of 103.95 on Thursday, establishing more than a four-month high for the currency pair.
Prior to this advance, USD/JPY had been entrenched in a prolonged trading range above 100.75 support.
In its current rise from support, the currency pair has also respected a long-term uptrend support line extending back to the 77.00-area low of September 2012.
After reaching a five-year high of 105.43 at the very beginning of this year, price action pulled back to establish the noted 100.75 support level in February before entering into what has become a six-month trading range thus far.
The high of that range at 104.11 was hit briefly in April. Thursday’s high of 103.95 was just slightly short of that April range high.
With any continued upside momentum above 104.00, the current trading range could well be broken, with the major upside resistance target around the noted 105.43 high. Short-term downside support currently resides around the 103.00 level.
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.