USD/JPY (daily chart) has tentatively advanced to resume its bullish stance after having pulled back in the past couple of days off its 30-month high at 89.65 that was hit in the beginning of the week. The pullback off that high descended slightly below the key 88.00 support level, which was around the 61.8% Fibonacci retracement of the prior bullish run. After making that pullback and bounce off support, price has made a substantial bullish push today to re-approach the 89.65 high. With key potential resistance nearby, around the 90.00 level, a breakout above that level would confirm a continuation of the strong bullish trend that has been in place for the past four months since the 77.00 area low, and could move towards further potential resistance to the upside around the 92.00 level. To the downside, the 88.00 level may continue to serve as key potential support within the strong bullish trend.
James Chen, CMT
Chief Technical Strategist
FX Solutions
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