In yesterday's trading the greenback strengthened against the yen to a level not seen over the past two months. As traders shrugged off poor performing US retail sales numbers, they continued to buy dollars and sell yen as expectations for an improving US economy takes shape.
At the close of yesterday's New York trading session, the USD/JPY was trading near its session high of 83.80 from its opening day price of 83.40.
Continued gains have been booked in the USD/JPY following a breakout of the triangle consolidation pattern. The pair's appreciation stymied at the 200-day moving average which comes in at 83.90. A breach above this level should then target the December high of 84.50, followed by the September high at 85.90. Support for the pair is found at this week's low of 83.10 followed by the descending leg of the triangle which comes in today at 82.60.