The USD/JPY Consolidation Is Finally Over

The USD/JPY consolidation has continued since the end of 2014, but it looks like it’s finally over because the pair broke above the resistance at 121.90, which it has tested three times for the past months, and climbed a little over 100 pips for the past day. The bullish trend continues and I think the pair is headed for target 125.50, although it may continue climbing higher than that. That said, I think this is the last rally of the bullish trend which has lasted since the beginning of 2012. Once the bullish trend ends, I think we can expect a very long-term correction to begin. For now, however, I have opened new long positions and I intend to keep them open for the time being.