Add To Bullish USDJPY Position

September 11, 2013 in Forex Fundamentals and News

We wrote about USDJPY breaking higher from recent consolidation on 6 Sep 2013.

The price action now is confirming the move to higher levels. The down trend line from May (red downward sloping line) was broken and then tested as support. Prices bounced off the support and continued higher, confirming the move higher.

The underlying structure of the market is supportive of the move higher too. See monthly chart below. A saucer formation is formed, indicating prices are trending higher.

We also observe that the Dollar Index has good support and Nikkei is trading above the down trend line from May indicating a possible move higher. These also argue for a higher USDJPY.

 

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