Although it is stated that I have a long bias, it is solely due to probabilities because this pair could get destroyed in the next weeks.
Higher lows on RSI seems to confirm that the pair wants to go up again (continuing 2013 uptrend) and that the consolidation we've been witnessing since the beginning of 2014 was only a pause in the longer-term trend.
If, however, we broke support (101.00-ish), this could be taken as bearish for USD/JPY and a short entry should be seeked.
But, if the trade is to be taken now, it is far more advantageous to go long because the Risk/Reward ratio is more favorable. A small amount should be risked on this trade though.
From a fundamental standpoint, I think stock indices from the United States and Japan will influence this pair's future path. Continued weakness would cause an increase in demand for safe-haven assets like the yen.
With that being said, USD/JPY could be very interesting next week!
L.F.
Higher lows on RSI seems to confirm that the pair wants to go up again (continuing 2013 uptrend) and that the consolidation we've been witnessing since the beginning of 2014 was only a pause in the longer-term trend.
If, however, we broke support (101.00-ish), this could be taken as bearish for USD/JPY and a short entry should be seeked.
But, if the trade is to be taken now, it is far more advantageous to go long because the Risk/Reward ratio is more favorable. A small amount should be risked on this trade though.
From a fundamental standpoint, I think stock indices from the United States and Japan will influence this pair's future path. Continued weakness would cause an increase in demand for safe-haven assets like the yen.
With that being said, USD/JPY could be very interesting next week!
L.F.