December 2, 2013 – USD/JPY (daily chart) has established a new 6-month high to begin the final month of 2013, hitting its intermediate price target at the 103.00 resistance level. This brings the currency pair close to its multi-year high of 103.72 that was established in late May, and closer to a confirmed continuation of the bullish trend that has been in place since the September 2012 low near 77.00.
The current bullish run has been steep and unrelenting since the pair broke out above a large triangle pattern consolidation around one month ago in early November. That breakout went on to reach its initial target around the key 100.00 psychological level, and then pushed swiftly higher to its current position around the second major target at the 103.00 resistance level.
The clear subsequent target to the upside is a re-test of the noted 103.72 high, a breakout above which would finally confirm a continuation of the longstanding uptrend. In that event, further upside resistance targets reside around 105.00 and 108.00. Tentative downside support currently resides around the 101.50 level.
James Chen, CMT
Chief Technical Strategist
City Index Group
Forex trading involves a substantial risk of loss and is not suitable for all investors. This information is being provided only for general market commentary and does not constitute investment trading advice. These materials are not intended as an offer or solicitation with respect to the purchase or sale of any financial instrument and should not be used as the basis for any investment decision.
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