U.S. Dollar/Japanese Yen breaks out again

The U.S. Dollar (USD) is breaking higher again versus the Japanese Yen (JPY) after defending rising 26- and 40-day moving averages near 155.38–154.30 as support. This helped USD/JPY push through a tactical downside line to complete a bullish continuation pattern. The breakout favors upside beyond the late November peak at 157.90 and the January high at 158.88 toward 159.61 (61.8% extension of the 10/17–11/20 rally projected from the 12/5 low), 161 (February–October triangle pattern target), and 162.86 (100% extension).

We highlighted past bullish breakouts of USD/JPY in this blog on October 8 and October 30.

Chart 1: U.S. Dollar / Japanese Yen