200-period simple moving average in blue, 50-period simple moving average in brown, 8-3-3 slow Stochastics on 2nd pane.
USD/JPY (daily chart) as of November 21, 2012 has extended a full week of substantial gains and has established yet a new 7-month high in the process. During this bullish run, price has broken out above several key resistance levels, including the important 80.50 level, which the pair had previously been unable to breach for the prior six months. USD/JPY has just risen to break out tentatively above 82.00 and, bearish retracements notwithstanding, has a potential upside bias towards a re-test of the important 84.00 level, last reached in mid-March. For the past two months, price has been forming a bullish trend line extending back to the September low just above 77.00. The current bullish breakout run can be seen as an acceleration of that short-term uptrend. To the downside, the strong previous resistance level at 80.50 could potentially serve as new support for any near-term bearish corrections.
James Chen, CMT
Chief Technical Strategist
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