USDJPY has finally managed to rally through the stubborn 78.30 & 78.67 resistance levels and finally taking out psychological resistance at 79.00; meaning that the recent rally has not been a fluke and the bulls remain in firm command of the pair in the coming sessions. On the hourly chart we have spotted a bullish pennant, which suggests a continuation pattern of roughly the size of the flagpole. Should the pattern get triggered our target would be around 82.00

Above us resistance is noted at 79.80/90 (Bullish Pennant & 20th Feb high), which would trigger an extension to 80.24 (4th Aug high), and 81.48 (8th Jul high).

We stand ready for a short term correction as some indicators, such as RSI, stand noticeable in overbought territory. On the downside, technical levels below are largely unchanged; first minor support is 79.00 (resistance turned support), 78.68 (14th July 11 high), 77.36 (13th Feb low), then 76.50 (7th Feb low), 76.04 (1st Feb low), 75.54 (record low seen on 31st Oct), 75.00 (major psychological level).

MT4 - USDJPY has finally managed to rally through the stubborn 78.30 & 78.67 resistance levels and finally taking out psychological resistance at 79.00; meaning that the recent rally has not been a fluke and the bulls remain in firm command of the pair in the coming sessions. On the hourly chart we have spotted a bullish pennant, which suggests a continuation pattern of roughly the size of the flagpole. Should the pattern get triggered our target would be around 82.00

Above us resistance is noted at 79.80/90 (Bullish Pennant & 20th Feb high), which would trigger an extension to 80.24 (4th Aug high), and 81.48 (8th Jul high).

We stand ready for a short term correction as some indicators, such as RSI, stand noticeable in overbought territory. On the downside, technical levels below are largely unchanged; first minor support is 79.00 (resistance turned support), 78.68 (14th July 11 high), 77.36 (13th Feb low), then 76.50 (7th Feb low), 76.04 (1st Feb low), 75.54 (record low seen on 31st Oct), 75.00 (major psychological level).

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