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 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.

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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