USD/JPY: Above 99.95 Favours an Extension Towards 105.00 Initially
USD/JPY has managed to break over the 99.95 high in recent trade. Given prior daily structure, we continue to favour a further extension higher towards the 105.00 area initially. In fact the next key historic level lies at 110.66 (15/08/2008 high). We have met our first objective and have thus moved our stop to entry at 100.14.
In order to maintain this positive momentum we look for the price to remain above 98.58 (08/05/2013 low). Under this level would warn of a larger relapse.
We remain wary of the over extended nature of this market, but see scope for momentum to never the less carry it higher.