The USD/JPY rose very strongly over the past few weeks, eventually peaking the week before last at its highest closing price seen in over 6 years above ¥125. The past week saw the price come off these highs and slowly begin to consolidate on diminishing volatility.
There is a reason to keep looking to the bullish side after such a strong price movement, and public declarations from the Bank of Japan suggesting they could tolerate the price rising as high as ¥130 before intervening.
The best way to judge whether this pair is going to make another significant rise is to watch whether we can get a daily New York close above the key resistance level at ¥123.12. I will not take a long trade until that hurdle is overcome. The fact that last week’s candlestick was a pin bar is another reason to be cautious.
There is a reason to keep looking to the bullish side after such a strong price movement, and public declarations from the Bank of Japan suggesting they could tolerate the price rising as high as ¥130 before intervening.
The best way to judge whether this pair is going to make another significant rise is to watch whether we can get a daily New York close above the key resistance level at ¥123.12. I will not take a long trade until that hurdle is overcome. The fact that last week’s candlestick was a pin bar is another reason to be cautious.