USD JPY sustains strength within consolidation

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 […]


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By :  ,  Financial Analyst

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.

 

USDJPY technical chart

 

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.

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