The USDJPY continues the march higher. The pair has tacked on another 90 or so pips to the upside in trading today. The range for the day is around 97 pips the low was reached in the first few hours of trading today (see 5 minute chart. The price has not had a closing bar below the 100 bar MA (follow blue line in the chart below). The correction seen in the NY session took the price below trend line support but buyers came in against the 100 bar MA. The rally to the newer highs for the day (the newer 7 year highs) has extended to 117.76.
The intraday chart show a bullish trend with the price remaining above the 100 bar MA for the day (follow blue line).
Looking at the weekly chart below, the next target comes in at the 117.93 level. This is the high price going back to October 2007. Also near that level is the topside trend line target on the 5 minute chart at the 117.87 currently (and moving higher). This should be a level to lean against on a continuation higher for intraday profit taking, but make no mistake about it, the sellers will have some more proving to do even if they successfully defend this next target. That would include getting below and staying below support levels from the 5 minute/1 hour charts (for example, the 100/200 bar MA on 5 minute chart and other trend line support levels from each chart).
USDJPY moves closer to the next upside target at the 117.93 level (high from October 2007).
It is hard to get in the way of a freight train (i.e. trending market). Yesterday, there was some signs of a possible corrective move down (see POST “Forex Technical Trading: USDJPY double top contains the pair“). That technical idea did not pan out as the US still remains > Japan and the technicals confirmed that idea with a move back above a broken trend line. In a trending market, the temptation is to look for places to sell but if the targets are not reached (like the 100 hour MA from yesterday’s post) and the price moves back above a level that was broken, it is important to get out of the counter trend move. It just does not pay to get in front of the freight train.
As Adam says, “USD/JPY is one of those trends you dream about“. It sure is.
The USDJPY tried to sell off yesterday but that was halted and the price trend continued.
