The USDJPY is as we write looking to break higher through resistance on the daily chart. This resistance has acted as a very solid previous support. This level is crucial to how this market plays out, and to whether the bulls or bears gain control. We can see a Bullish Engulfing Bar that has formed at the bottom of this market which has sent price higher into resistance.
If price is to break higher through resistance, we would look for price to move higher as long as old resistance holds and new support. Should the bears reject the resistance level and sell off we would look for the next move to be to the downside.
USDJPY DAILY CHART – 2 OCT 2012