In recent times in this blog we have covered how the USDJPY has been in a super strong up-trend. When trading the Forex market the trend really is your friend and when you can identify an obvious trend like has been in place on the JPY pairs it is best to trade with it and not fight against it.
Price on the daily chart has now continued this up-trend and smashed through the recent resistance to go onto test levels that have not been seen for three years. If price can continue this move there is still plenty of space for it to move into and this up-move could be only just getting started.
The next resistance comes in around 97.50. Should price rotate lower, traders could look to get long from bullish price action at value areas. A solid trading opportunity could present if price rotates lower into the old resistance area. This level would look to hold as new support for any bulls to come into the market and could push price back higher.
You can read about how to enter from value areas and retracement levels in this quick article here: Trading From Value.
USDJPY DAILY CHART – 8TH MAR 2013