USDJPY Resumes Uptrend – Long Term Support And Resistance Levels
Dollar/yen has seen a resumption of the recent uptrend today, now markedly higher after a break above the 80.60 area resistance we highlighted in this USDJPY update, and moving to a fresh 7-month high.
The Japanese yen has now dropped 8% during the past year, when referencing a weighted index of 10 currencies, and is showing signs of longer term bottoming, in the context of current market conditions.
The key potential support we will be monitoring is the previous 80.60 area resistance, further to the is the 80.00 round number level and the daily 200 SMA at 79.76. The move higher today has us looking at the longer timeframe (see weekly chart below) for associated resistance levels.
Potential upside levels of note, as identified on the USD/JPY weekly chart below, are as follows:
- A descending trend line is currently located around 70 pips to the upside at 82.12. This trend line originated at the 85.51 April 2011 swing high.
- 15/3/12 daily high is highlighted at 84.17, a prominent swing point on the chart.
- 85.00 psychological round number level and 200 period weekly SMA (85.15) closely aligned.
- The 6/4/2011 daily high is at 85.51. A move above the aforementioned 85.51 level would see USD/JPY trading at a 2-year + high.
USD/JPY – Relative Strength Versus Currency Majors – November 2012