USD/JPY spikes to new multi-year high above 119.00
James Chen December 1, 2014 6:59 PM
<p>USD/JPY (daily chart shown below) spiked to a new seven-year high above 119.00 in early Monday trading, the first day of December, before retreating. This […]</p>
USD/JPY (daily chart shown below) spiked to a new seven-year high above 119.00 in early Monday trading, the first day of December, before retreating.
This new multi-year high surpassed the last major high of 118.97 that was reached less than two weeks ago in late November.
Since mid-October, the currency pair has been fuelled by exceptional US dollar strength and corresponding yen weakness that have catapulted USD/JPY up by more than 13% within the span of a month and a half.
This steep ascent, which has not experienced any major pullbacks as of yet, followed a significant pullback that occurred during the first half of October.
After that pullback, the current bullish run advanced sharply to hit and surpass successively higher upside targets, including 110.00, 111.50, 114.50, and most recently, 118.00.
With any continued upside momentum after the new long-term high, the next major resistance target immediately to the upside resides around the 120.00 level, last hit in 2007.
While the overall trend bias for USD/JPY continues to be strongly bullish, a pullback should soon be due after the recent over-extension. A key downside support area in the event of this pullback now resides around the recently broken 114.50 level.
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