May 9, 2013 – USD/JPY (daily chart) has consolidated within a pennant pattern just under the 100.00-area highs. This pattern generally has a bullish breakout bias, especially as it occurs during the course of a strong and steep uptrend that has been in place for the past seven months. The pennant represents a correction and consolidation after the long-term high just shy of the 100.00 target was established about a month ago and then re-tested just about a week after that. A breakout above the pennant would place price very close to those highs once again for yet another attempt at rising above 100.00. A breakout above 100.00 would confirm a bullish trend continuation with a further upside objective around the 103.00 resistance area.
James Chen, CMT
Chief Technical Strategist
City Index Group
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