April 22, 2013 – USD/JPY (daily chart) has risen in the past week to approach major resistance around 100.00, re-testing the four-year high of 99.93 that was established just a week-and-a-half ago. This advance comes after the third major pullback correction within the steep bullish trend that has been in place for the last seven months. After the most recent pullback, which hit a low of 95.76 early last week, price has made a substantial recovery to approach strong resistance around 100.00.
A continuation of the steep uptrend after this most recent pullback would be confirmed on a breakout above the 100.00 level, which should target the 103.00 resistance area to the upside, a significant long-term support/resistance level. Tentative downside support now resides around the 98.00 level.
James Chen, CMT
Chief Technical Strategist
City Index Group
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