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
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.