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USD/JPY - Look for a Pullback Before Further Gains

The USD/JPY has been bullish since February, after a multi-month triangle consolidation which you can see in the daily below. But first let's take a look at the 4H chart.

USD/JPY 4H Chart 3/10
(click to enlarge)

The 4H chart shows the pair with a bearish divergence, and a bearish reversal candlestick combination as USD/JPY tags the 122 psychological level.

If there is a pullback, we should look for support in the 119.50-120 area as the pair approaches the cluster of 200-, 100-, and 50-period SMAs as well as a couple of rising speedlines projected from February's lows around 117.

USD/JPY Daily Chart 3/10
(click to enlarge)

We should note that USD/JPY just broke the 2014-high at 121.70. The daily chart shows a market in dominant bullish technical conditions based on price action, moving averages and the RSI, so further upside can be expected.

USD/JPY is opening up its 8-year highs, and the 124.16, 2007-high is in sight. Look at the monthly chart below. Above that 124.16 high, the next resistance pivot will be around 125.64, which goes back to 2002. Above that, the 2002-high stands in the 135-135.16 area.

USD/JPY Monthly Chart 3/10

(click to enlarge)