USD/JPY Daily Outlook- April 30, 2014

|

By: DailyForex.com

The USD/JPY pair rallied during the session on Tuesday, but as you can see a back most of the gains in order to form a perfect shooting star. With this perfect shooting star, I suspect that this market will pull back a little bit, but at the end of the day we should see a significant amount of buying pressure underneath. It is because of this that I look at this market as one that will more than likely offer a nice buying opportunity soon.

All I need to see is some type a supportive candle between here and the uptrend line that I have on the chart in order to start buying. I recognize that the 102 level offers a possible support level, and most certainly the 101.50 region does as well. Because of this, I have three potential support areas between those two levels and the uptrend line just below, and as a result I am most certainly bullish of this market still.

Several stops along the way.

I believe that there will be several stops along the way, but ultimately we should end up at the 105 level. It might take a while, because I see the shooting star as resistance, the 103 level as resistance, and the 104 level is resistance before we even get there. In other words, expect a lot of choppiness but I still believe that we have enough bullish pressure underneath to continue going higher, albeit long-term.

Selling is going to be almost impossible, simply because of the support levels and the fact that the Bank of Japan is working so hard to devalue the Yen. I cannot believe that the Bank of Japan is going to let the Yen continue to gain in strength for too much longer, and as a result they will eventually get their desire, a cheaper currency to help boost exports in what is one of the most export sensitive economies in the world. Going forward, I think that every time this pair dips, it will offer a buying opportunity.

USDJPY Daily 43014

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.