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USDJPY breaks above multi year trendline resistance

USDJPY Tech analysis by Simon Kazinsky on 07:06 July 13, 2018 EST

It has finally made it. The pair has been consolidating for a couple of years in the 110 area. Not much has been going on since after the initial ramp up initiated in 2013.

The chart shows a break above the descending trendline that had been capping all previous attempts. A close of the month above 111 will give confidence that this is not a false break.

Around 60% or retail traders are betting against the pair which provides fuel for its journey upwards.

The Japanese yen has always been considered a safe haven as it performs well against other major currencies in times of instability. The fact that USDJPY is breaking above such important resistance indicates we may have to wait a bit longer for the inevitable correction in the stock market.