USD/JPY surges to new seven-year high
James Chen November 14, 2014 7:55 PM
<p>USD/JPY (daily chart shown below) has continued its accelerated rise, hitting a new seven-year high and approaching the 117.00 handle in early trading on Friday. […]</p>
USD/JPY (daily chart shown below) has continued its accelerated rise, hitting a new seven-year high and approaching the 117.00 handle in early trading on Friday.
Since mid-October, the currency pair has been fueled by exceptional US dollar strength that has catapulted USD/JPY up by more than 10% within the span of a month.
During the course of this steep and relentless run, successive upside targets have been hit and surpassed, including 110.00, 111.50, and most recently, 114.50.
With continued upside momentum, the next major resistance target immediately to the upside resides around the 118.00 level, last hit in late 2007.
While the trend bias for USD/JPY continues to be strongly bullish, a pullback should soon be due after the recent over-extension. Downside support areas in the event of this pullback now reside around the recently broken 114.50 and 111.50 levels.
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