The USD/JPY rallied after finding support from June’s rising trendline, as noted in the previous update. During the 6/27 US session, it trying to push above this week’s high which was at 79.75. This was also 38.2% retracement of the latest downswing from 80.60 to 79.20. On top that this was seen as resistance during the June 7-June 13 consolidation period, and was seen a few more times as resistance since then.
In the near-term, a break above this 79.75 resistance cluster opens up the 80.00 psychological level, which was also a previous support pivot. The 61.8% retracement level is just above at 80.07. The 4H RSI shows that the bullish momentum has been maintained as the reading remained above 40. A break above 60 can reflect the market’s attempt to rest the 80.60 high, for continuation of June’s bull run.
USD/JPY 4H Chart 11:30AM EDT 6/27/2012