USD/JPY Weekly Outlook
USD/JPY’s uptrend extended to as high as 129.39 last week but turned sideways since then. Initial bias remains neutral this week for consolidation. The downside of retreat should be contained above 125.09 resistance turned support to bring another rally. On the upside, above 129.39 will target the 130.04 long-term projection level next.
In the bigger picture, the break of 125.85 resistance (2015 high) suggests that the whole up trend from 75.56 (2011 low) is resuming. The further rise should be seen to 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04. Sustained break there wave the way to 147.68 (1998 high). For now, this will remain the favored case as long as 121.27 support holds.
