Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

USD/JPY in an Imminent Bullish Breakout

The USD/JPY has been on a bullish run, but stalled this week after tagging the 122 handle, which is a new high on the year, and surpassed the 121.70 high in 2014. After stalling at 122 USD/JPY retreated.

USD/JPY 1H Chart 3/12
(click to enlarge)

The 1H chart shows the abc correction since 122, and as price tagged a previous support area around 120.65, we saw another bounce. Note that price is still trading above the 200-hour SMA which shows some bullish bias in play. Now, USD/JPY is approaching the 121.50 level where the falling channel resistance resides. 

A break above 121.50 should open up the 122 handle with risk of pushing even higher. In the monthly chart, we can see that price is approaching a key resistance around 124.16, which is the 2007-high. Perhaps, we can think about a possible consolidation when price tags that high, but for now, the bullish momentum has 122 and beyond in sight.

USD/JPY Monthly Chart 3/12
(click to enlarge)