Holding below the next target so far
The USDJPY was close to moving back into the box which has defined the range over the last few months of trading (see red box), but the US CPI put event that idea. The subsequent rally has taken the price through the week's high and backup toward the years high levels. The high price peaked at 121.55. This corresponds with the high from March 13. The high from March 12 comes in at 121.66. The high for the year comes at 122.01. The high close for the year was at 121.46. That is where we are trading currently. The high from Wednesday peaked at this level.
Technically this pair has been in a confined range since February (and really before). This week a step was taken in the bullish direction on the break of the trendline. With other levels to get through, the work was not over for the bulls, but they started to take control. Can the bulls complete the break by getting above and through the next targets?
Where is the risk below now? The 121.36-39 is close support (see yellow area in the chart below). Below that the 121-19-278 (38.2-50% of the trend leg higher) should find buyers if the trend is to remain intact.
