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USD/JPY: Increased risk for further upside near term - JPMorgan

FXStreet (Bali) - According to JP Morgan FX Strategists, USD/JPY has confirmed a bullish shift with an increased risk for further upside in the coming weeks.

Key Quotes

"The price action over the past month has confirmed a bullish shift for USD/JPY with an increased risk for further upside in the coming weeks. In this regard, the rally above critical resistance at the 105.45 January high suggests the medium term uptrend is back on track in line with the broad USD advance. Moreover, the extension above important trendline resistance from the 1998 cycle high is another medium term positive development."

"With new highs expected, corrective retracements are viewed as buying opportunities. The push above short term targets in the 106/107 zone shifts the focus to medium term targets in the 109/110.65 area. This area represents the Elliott swing targets from the 2011 cycle low as well as the high from 2008 and where some corrective action could develop."

"While the 105.45/105.00 breakout area now acts as key short term support, a violation of the 103.55/103.05 zone (August breakout) is necessary to suggest a more sustained corrective phase underway."

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