The USD/JPY has now closed above the 124.00 level for the first time since 2007 with traders continuing to buy dollars at any sign of good US data. The level to keep a close eye on is 125.00; the bulls have tested the psychological level in early Asian trade but a number of likely offers at 125.00 have so far capped the recent run.
Long-term players have been buying USD/JPY since the 1:1 (Purple) at 105.350 held back on the 15/10/2014 and more recently on the 38.2 Fib (Blue) at 115.550. The market had been trading in a wide range between the 122.100 high and the 38.2 Fib at 115.550 until recently, when the trend line (Yellow) at 122.400 failed to contain the bulls as they continued to buy up US dollars.
The bulls have been seen buying dollars on a number of important 1:1 support levels over the past week, starting with the 1:1 (Blue) at 123.470 and again the day after on the 1:1 (Yellow) at 123.61, and most recently today on the 1:1 (White) at 124.480.
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This is an indication that the bulls are still in control and will remain in control until the market overbalances the current 1:1 trend. If the bulls can continue to attract solid buying interest on the current 1:1 (White), a push to take out the 125.000 psychological level will be on the cards in the coming sessions, however, any failure to do so will see a push for stops below the 1:1 (White).
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