May 15, 2013 – USD/JPY (daily chart) has continued its advance to approach a major upside resistance target around 103.00. This occurs after the pivotal breakout above 100.00 that occurred late last week, after which the pair has hardly paused in its almost relentless climb towards higher multi-year highs. While the bullish trend bias is currently clear and sustaining, USD/JPY should be due for another downside correction before potentially reaching back up once again towards even loftier levels. The most well-defined downside support objective for this potential correction resides around the key 100.00 level, as prior resistance may well become future support. Further upside targets on a continuation of the entrenched bullish trend reside around 105.00 and then 108.00.
James Chen, CMT
Chief Technical Strategist
City Index Group
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