The USD/JPY has been consolidating for a little over a week since making a high on the year at 121.84. After a correction back down to 117.43, it looks ready for bullish continuation. Let’s take a look at the charts to assess the USD/JPY’s technical conditions.
After the retreat from 121.84 to 117.43, price stabilized and broke above a falling trendline. It has since pulled back but is starting the week showing that it can hold above 117.43. As it now moves to break above 119, it is confirming last week’s bullish breakout.
Still, we a break above 120 will clear some short-term resistance factors. The 1H RSI should tag 70 while the 4H RSI should push above 60. Then, USD/JPY has the 121.80-122 area in sight. Above that, there is room to 124-124.16 before hitting the 2007-high. With the monthly RSI above 80 already, we can expect some resistance around 124.
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