FXStreet (Córdoba) – A stronger Greenback across the board pushed USD/JPY above 121.00. The pair reached at 121.22 the highest level since September 10. It was trading at the highs, holding a bullish tone.
Stocks in the US are retreating but the US dollar continues to rally in the market: it erased losses against commodity currencies and rose to fresh monthly highs versus the euro, the pound and the Swiss franc.
USD/JPY: From extreme to extreme
The pair is rising of the four day in a row and from last week lows it has risen more than 300 pips making a significant reversal. Now it is about to test 121.30 (September highs) and above 121.60/70 (Aug 28 & 31 highs).
The technical outlook changed significantly from a week ago, when it traded momentarily below the lower limit of a trading range that has been in place since late August. Now price is doing the opposite and is testing the upper limit. A consolidation significantly above could signal a continuation of the rally.
(Market News Provided by FXstreet)