USD/JPY rises within consolidation
James Chen April 23, 2015 7:28 PM
<p>USD/JPY (daily chart shown below) has risen for much of the current trading week within the confines of a prolonged trading range consolidation. This consolidation […]</p>
USD/JPY (daily chart shown below) has risen for much of the current trading week within the confines of a prolonged trading range consolidation.
This consolidation has been in place since December of last year, when the currency pair closely approached its upside target of 122.00 after a steep climb.
Since that high was reached, USD/JPY pulled back and then finally rebounded to hit its 122.00 target in early March, establishing a new seven-year high, before retreating and falling into the current trading range.
The overall trend bias continues to be to the upside within the context of the long-standing bullish trend since 2012.
Currently trading around the 120.00 level, which is also in the near vicinity of the key 50-day moving average, the currency pair’s major downside support within the current trading range resides around the 118.30 level.
The upside target continues to be at the noted 122.00 level. Any subsequent 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.