The USDJPY has continued the push higher today after yesterday’s surge higher. The 38.2% retracement of the move down from the March 2012 high comes in at the 80.14 level. This and the 100 day MA at the 80.395 level are the next topside targets. The pair has been stepping higher from the low yesterday, holding the “Correction Zones” of the legs higher (38.2%-50%). Holding these levels are a signal the buyers are still in control. On the current leg I will be watching the 79.94 level. This was the last high (see chart below).
With key resistance ahead, however, the bulls/longs should be tempted to take some profit on the first test. Look for some selling against the resistance at the 80.14 level with stops above.
