Bias: Mixed - waiting for breaks as there is potential for a sideways consolidation
The way this has pushed higher tends to be pointing to a stronger rally. The 145.00-20 support must hold for this and a break then above the 145.80-04 area should extend gains to 146.41-70 at least. Take care here as this is the minimum target. Watch what GBPUSD is doing and whether that is also breaking above the 1.6346-74 area. We shall need to be open to a bearish reversal pattern or just plain extension higher and if the latter occurs then I'll be looking for extension through to 147.20-44 and then 148.00 en route a final target at 148.57.
16th December: The break above the 145.65 high is opening up the potential for a minimum target at 146.41-70 and potentially 148.57. I suspect the higher area should hold and here watch USDJPY at 90.77 and GBPUSD at 1.6492-08 for signs of a cap.
Even though I am bullish I am quite aware that we are in a choppy market and it's not impossible to see this minor follow-through and then reversal lower. There is a bearish divergence in the hourly chart and we should not ignore that. However, I feel we'll need a break back below 145.00-20 to make that a stronger risk and below 144.57 would trigger losses through to 144.00-20 and 143.34-54.
10th December: Only below 140.72-03 would retest the 139.30 low - but I still feel we'll see this hold for a correction higher.
For access to my daily support & resistance levels please see the Daily Forecast page of my web site
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are available on the Daily Forecast page of my web site along with a new report showing the prior day’s support & resistance levels.