NEW YORK (
) -- The USD/JPY pair is now threatening its minor resistance at the 83.08 level after it strengthened in early trading Thursday.
On a continued hold on its present bull pressure, USD/JPY should push toward the 83.65 level, its high of Jan. 7. A decisive break there will open the door for further gains towards the 84.50 level and the 85.92 level, its high of Sept. 12, 2010. Price hesitation is likely there, but if that level fails and a break above it occurs we should see further strength targeting its 50-day exponential moving average of 87.54.
Alternatively, the risk to analysis will be a return below the 81.84 level which will turn risk toward its 2010/11lows at 80.90/23. Below that zone it will resume its broader weakness towards the 1995 low at 79.75 and then the 78.00 level.
All in all, though the pair remains vulnerable to the downside long term, it now faces consolidation price activities.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.