USDJPY 123.15 – Neutral – Narrowing range remains intact
USDJPY has been tracing a narrowing price range over the last 4 weeks under the 123.76 high (November 18, 2015). The 122.22/121.50 (November 16 low/October 27 high, 2015) near the 200 day moving average should provide support for dips. An upside break through 123.76 is needed to extend the current rally towards the 125.27/125.85 resistance zone (August 12/June 5, 2015 highs). However, a clean loss of the 121.50 area would caution bulls and signal further weakness towards 120.01 (October 28, 2015 low) ahead of the 3-year rising trendline (from September 24, 2012 low).