February 23, 2009
USD/JPY Breaks Upwards - Could It Reach 100?
The USD/JPY has fallen from around 110 to just 87 in the last six months or so and has had a torrid time, but there are now a few signs emerging that we could be entering a new bullish trend. This may well be short-lived but we could easily test the 100 level in the near future in my opinion.
The Supertrend indicator has finally turned bullish for this pair on the daily chart which means that I will automatically be looking for long positions on the 4 hour chart for this pair from now on. This indicator had been bearish since September 04 2008 so this is a good sign that the downward trend could be coming to an end.
Also if you are a member of Marketclub, you will see that there have been positive buy signals generated for this pair in recent weeks on both the daily and weekly charts, which is another encouraging sign.
Of course we could well see a bit of consolidation around these levels but with the USD/JPY currently trading at around 94.60 at the time of writing, I would expect this pair to be nearer 100 than 90 in a few weeks time.