USD/JPY rises toward long-term highs
James Chen May 21, 2015 7:19 PM
<p>USD/JPY (daily chart shown below) has risen above its previous trading range consolidation to advance towards its seven-year high of 122.00 that was established in […]</p>
USD/JPY (daily chart shown below) has risen above its previous trading range consolidation to advance towards its seven-year high of 122.00 that was established in March.
This rise, which has just established a new two-month high for the currency pair, was preceded by a prolonged sideways consolidation that extended back to March’s high.
From a longer-term perspective, USD/JPY has been entrenched in a long-standing bullish trend since 2012. The two significant highs of this uptrend thus far occurred in December of 2014, just short of the 122.00 target, and in March at the noted seven-year high of 122.00.
The current rise occurs during the recent resurgence of US dollar strength after a brief period of pullback.
As a strong bullish trend is firmly in place from both a long-term and short-term perspective, the next major upside target for the currency pair is at the noted 122.00 resistance level.
Any break above 122.00, which would confirm a continuation of the long-term bullish trend, should target the 124.00 level as the next major resistance objective to the upside.