USD/JPY (daily chart) has extended its week of significant gains, establishing a new 7-month high in the process. During this substantial upside run, price has broken out above several important resistance levels, including the key 80.50 level, which the pair had previously been unable to breach for the prior 6 months. USD/JPY has just risen to break out tentatively above 82.00 and, bearish retracements notwithstanding, has a potential upside bias towards a re-test of the important 84.00 level, last hit in mid-March. For the past two months, price has been forming a bullish trend line extending back to the September low around 77.00. The current bullish breakout run can be seen as an acceleration of that short-term uptrend. To the downside, the strong previous resistance level at 80.50 could potentially serve as new support for any near-term bearish corrections.
James Chen, CMT
Chief Technical Strategist
FX Solutions
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