Earlier this week we posted about the USDJPY being in a range. In that post we discussed the likelihood that price would make a break higher and move aggressively to the next resistance. To read that post see here: USDJPY Winding Up
On the daily chart of this pair we can see that price has now broken out of the range it was trading in, and has moved significantly higher. Traders who were long in this pair on the break out, have now been rewarded by being able to take profit off, or at the minimum protect capital by moving to break even (zero risk trade).
Price is now in a clear up-trend and the best play is to look for any weakness as possible retraces in this trend. If we do get weakness and price retraces lower, traders could be presented with a chance to get into a trade from a value area.
USDJPY DAILY CHART – 14 DEC 2012
Leave a Reply