As we spoke about in this blog last week the USDJPY is in a very strong trend higher on both the daily and 4hr charts. We can see a series of higher low and higher highs. The best play in this market has been to look to trade with this trend from any retracements back lower.
Price has now broken out through the recent high and has gone onto make a new higher high. Price is turning over and retracing back lower into the near term support level. An opportunity to get long could present if price moves into this support area of 90.25 and forms solid bullish price action.
This support level is important to the market structure at this stage and if the support fails and price moves lower, we could see a fresh leg lower.
USDJPY 4HR CHART – 29TH JAN 2013
Way cool! Some very valid points! I appreciate you writing this write-up plus the rest
of the site is really good.