FX:USDJPY U.S. Dollar/Japanese Yen
The price of this pair has been in a range between 101.30 and 102.70 since February 2014. Although there were breakouts above this level, the price still went back within the range. The recent price movement did not just breaks this range but also broke the previous high made in April 2014. This new high indicates that the bulls are ready to take over and the range bound might be over. Also, the current price is above a significant area which is 104.00. This level might be retested before the price continues to go up. Or the price will go back down to the upper area of the range which is 102.70 and will be retested. It can be seen in the chart that the breakout is a strong upward movement. This means that one way or another, a level will be retested because this strong move will not hold for so long. A retracement will likely to occur. So we want this retracement to happen on either of these two levels, 104.00 or 102.70. We know that this recent upward movement is and what we need to find is where to place our trade, and that would be the retracement and hold of a significant area. These two levels in the chart is important to watch and how the price will respond on either of these two. I'm with this pair.