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Forex pairs in this Article » USD/JPY
By: DailyForex.com

The USD/JPY pair initially fell during the session on Friday, but as you can see rose higher by the end of the day. The shape of the candle is more or less a hammer, and as a result I believe that this market is going to continue going higher now. We have broken above the 105 level, which was originally my target in this market. We have broken above there, so now I think that we are heading towards the 110 level given enough time.

The market certainly won’t go straight up, but as the Bank of Japan continues to loosen its monetary policy, and the Federal Reserve is starting to taper off of quantitative easing, this pair should essentially become a “one-way trade.” I believe that we have entered a nice long-term uptrend at the moment, and as a result I plan on holding a core position to the long side in this market, and then just simply adding and subtracting little bits here and there via both the spot Forex market and the options market.

Plenty of support below.

The market shows plenty of support as far as I can see, especially around the 101 and the 100 levels. Between here and there, I believe there are other minor levels as well, and that should continue to support this market as well. Looking at this, I think that this market is going to be a “buy on the dips” type of pair, which should be career making in its implications. There will be plenty of traders and make an absolute fortune in this pair as we continue to go higher, as will beginning traders lose a fortune trying to short what is starting to look like a freight train.

Because of all this, I’m gradually adding little bits and pieces of this position before I’m hoping that this market will allow me to put on a massive sized position and end up making this one of the largest portions of my trading portfolio. In fact, I believe that a lot of the Japanese yen related pairs should behave the same way.

USDJPY Daily 123013

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