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USDJPY: Reaching for long-term highs

Since the start of the year the currency rose more than 2.0% and also more than 2.0% this past week.

Last week the USDJPY rallied with a wide range, breaking above the weekly support and closed near the high of the week suggesting a strong bullish momentum.

The Stochastic is displaying a strong bullish momentum and crossed above the 50 mid line suggesting strength in the pair.

Last week the USDJPY changed from a recovery phase to an accumulation phase and is trading above all three moving averages the 10, 50 and 200 week moving averages signaling a clear and strong possible move the 2015 high.

Expecting an upward move to year high at 125.854 on a break above previous week high at 123.260 (scenario 1) or a bounce from a weekly resistance at 124.156 could push the currency down to a weekly support at 121.84 (scenario 2).