USD/JPY 1H chart 3/7/2013 1:15PM EST
Breakout extension: In the previous update on USD/JPY, I noted a flag consolidation breakout to the upside, as seen in the 1H chart. At that point pressure was on the 94.50 highs and the 95.00, 2010-high. Today (3/7), this bullish scenario came to fruition and the USD/JPY is trading at the 2010-high, stalling a bit around the 95.00 handle. The 1H RSI shows some overbought conditions, but the moving averages are in bullish alignment. Even though we can expect some near-term resistance around 95.00, the USD/JPY remains bullish.
100: The USD/JPY in the weekly chart looks like a raging bull, continuing to plow upwards even with the RSI in extremely overbought levels. Let this be a lesson not to pick tops. At this point a break below 93.00 is needed to neutralize the bullish outlook. The next key resistance might be around the 100 handle and around the 2009 highs. It seems hard to imagine it can make it there without a major correction, but a bet on the market to be logical in your definition of logical, might not be a good one.
USD/JPY Weekly chart 3/7/2013
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.