USD/JPY: Techs Point To A Potential For ‘Massive Move Higher’
USD/JPY continues to hold intermediate term support in the 109.90 – 111.39 area. Holding above this is important to keep a bullish continuation pattern forming. The two large dips since the 2015 high could be forming a continuation head and shoulders pattern.
A USD/JPY rally and weekly close though trend line resistance (117.25) could really mean a technical target upwards of 135.
Horizontal resistance of 118.75 will be a feat to overcome, however it would only add conviction to a larger uptrend unfolding.
*With this being a macro-based trade, we maintain a long USD/JPY position targeting 120.