USD/JPY at a 30 month peak – Guide to the

7

The rally of USD/JPY is just getting sharper and looks like a straight line up. At 88.26 at the time of writing, the pair is already at levels last seen in July 2010, before the first BOJ intervention of September 2010. Where next?

USD JPY Long Term Charts January 2013

USD JPY Long Term Charts – Click to enlarge

Many are expecting a pullback, and perhaps the US Non-Farm Payrolls could be the trigger for a pullback, regardless of the result. However, a combination of huge political will from Japan together with doubts about the infinity of the Fed’s QE programs requires a look at the next levels.

The 88 line was a double bottom during 2010. This is broken. 88.95 is the next line – this was support in early 2010.

90 is a round number but hasn’t served as support or resistance. Further above, 92.12 worked in both direction in 2009 and 2010.

A very important line is 94.70 – which capped the pair for long months in early 2010. Even higher, 97.80 capped the pair in late 2009.

The very round number of 100 is of course very important, and the last line if the vertical move continues, is 101.44, a peak in early 2009.

For more lines in the shorter term and events, see the USDJPY analysis.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

7 Comments

  1. it will come back at about 89.8 the 90 you mentioned is very near to this

  2. Pingback: USD/JPY Outlook January 7-11 | Forex Crunch

  3. Pingback: USD/JPY Reacting to Overbought Situation and Taking a Breather | Forex Crunch

  4. Pingback: USD/JPY Reacting to Overbought Situation and Taking a Breather | FuturPros

  5. Pingback: 3 things that did NOT happen in 2012 | Forex Crunch | Forex