December 2, 2013 – USD/JPY (daily chart) has established a new 6-month high to begin the final month of 2013, hitting its intermediate price target at the 103.00 resistance level. This brings the currency pair close to its multi-year high of 103.72 that was established in late May, and closer to a confirmed continuation of the bullish trend that has been in place since the September 2012 low near 77.00.
The current bullish run has been steep and unrelenting since the pair broke out above a large triangle pattern consolidation around one month ago in early November. That breakout went on to reach its initial target around the key 100.00 psychological level, and then pushed swiftly higher to its current position around the second major target at the 103.00 resistance level.
The clear subsequent target to the upside is a re-test of the noted 103.72 high, a breakout above which would finally confirm a continuation of the longstanding uptrend. In that event, further upside resistance targets reside around 105.00 and 108.00. Tentative downside support currently resides around the 101.50 level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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