USD/JPY sustains strength within consolidation
James Chen January 26, 2015 7:32 PM
<p>USD/JPY (daily chart shown below) has continued to sustain its strength within a price consolidation that has been in place since early December’s seven-year high […]</p>
USD/JPY (daily chart shown below) has continued to sustain its strength within a price consolidation that has been in place since early December’s seven-year high just under 122.00.
This price consolidation has taken the form of a large triangle pattern, which could serve as an indication that USD/JPY may be poised for a potential trend continuation to the upside.
The currency pair currently trades within a relatively long-term bullish trend that extends back to late 2012 and which accelerated in the second half of last year.
The first month of 2015 has thus far seen a general decline within the triangle consolidation, but recently there has been a significant rebound off the bottom of the triangle.
The trend and technical indications for USD/JPY remain strong. With major support continuing to reside around mid-December’s 115.50-area low, any break above the triangle pattern should target the 122.00 resistance level once again, with a further upside target around 124.00 resistance.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.