USD/JPY - Further Upside Still Favoured
USD/JPY has extended considerably higher after breaking over the 200- day moving average and the range high at 78.28. Our first and second targets have now both been met.
While we could see some corrective activity to unwind the recent accelerated advance, the underlying tone remains positive with the 78.29/79.00 zone seen holding for further gains towards 82.23 (May 2011 high) ahead of 83.30.
Meanwhile, settlement back below 77.99/78.29 would suggest that we have seen a false upside break, exposing minor support at 77.36 then the 75.35 record low in a more bearish longer-term scenario.