USDJPY potential bull flag update

Last week we identified a potential bull flag pattern in the daily USDJPY candlestick chart. Price action since then supports the view that a bull-flag may have formed, however the pair faces key resistance levels before seeing the next leg higher. Currently, USDJPY sees a major resistance level around 101.25/30 which is the base of the previously broken upwards trend channel and the top of the daily ichimoku cloud. If the pair can close above this level, the prior highs around 1.0370 come into focus. To the downside, near term support is around the 55-day simple moving average (SMA) around 99.20 ahead of the convergence of levels above the 97.00 figure. Here is a list of significant technical levels:

Support

99.20 – 55-day SMA
98.15 – 100-week SMA, daily ichimoku cloud base & Kijun line
97.25/45 – 21- and 100-day SMA’s, flag top

Resistance

101.25/30 – long-term bullish channel base & cloud top
103.70/75 – prior highs

Источник: Forex.com

02.07.2013