USD JPY consolidates gains after hitting 12 year high

June 1, 2015 – USD/JPY (daily chart shown below) has begun to consolidate its recent gains after reaching its original upside target last week by hitting and surpassing the major 124.00 objective and establishing a new 12-year high.

This milestone at 124.00 was hit after the currency pair broke out earlier last week above its previous target of 122.00, an exceptionally significant prior resistance level.

A recent resurgence in US dollar strength has led to the current extreme levels. The breakout above 122.00 last week confirmed a continuation of the long-standing bullish trend since 2012, after a prolonged sideways consolidation for the past five months.

Having risen to such high levels in a short period of time, USD/JPY should soon be due for a pullback, with key downside support on this potential pullback residing around the noted 122.00 level.

While this short-term pullback may soon be due, the currency pair clearly remains within a strong bullish trend, and the next major upside target on any further continuation of this trend resides around the key 126.00 resistance level.

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