USD/JPY Rally Continues

USD/JPY is on its way to conquer new highs. The pair reacted strongly bullishly to the bounce off of the 200SMA in mid-April when it reached a low of 108.13 and has been appreciating since then. It is now trading above 114 for the first time since mid-March.

If the bulls keep on pushing the pair, the first target is seen at 115.50 which has the potential to form a double top and put in motion the bear instincts to short the asset.

If that level is broken, then the next one is seen at 117, which falls on the upper trendline of the downtrend trading channel. This level would be harder to breach as it has stopped the bulls multiple times.

Recently, the US dollar has been showing signs of strengthening surprisingly right after the French elections when market participants expected the Euro to dominate the currency market.

Chart: USDJPY D1