USD/JPY surges to new seven-year high

<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.

 

USDJPY chart - 14.11.14

 
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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