The USD/JPY pair fell during a quite a bit of the session on Wednesday, but as you can see on the chart attached to this article, we found support below at the 101.50 level yet again. On top of that, this is an area that features an uptrend line that has been tested during the session as well. Both of those support areas have held up, and as a result I believe that this market does continue to go higher. I see no reason why we won’t go to the 102.50 level in the short term, and then the question becomes whether or not we can get above the 103 level as well. I think we can, but it could take some time.
If we get above the 103 level, I think that we had to the 104 level next, and then ultimately the 105 level. The 105 level is my longer-term target to begin with, and I do believe that eventually we will head to it, and quite frankly it wouldn’t surprise me at all to go above 105 and head to the 110 level given enough time. Don’t get me wrong though, I don’t think this is going to be an easy move.
Longer-term uptrend.
I believe that we are starting to form a longer-term uptrend, and this trend line of course is going to be very important for the future of this pair. Going forward, I see no reason why we will continue to go higher, but again I think that there will be plenty of buying opportunities on short-term charts every time we dip. The 100 level I think will be very difficult to break down below, so I am still longer-term bullish but understand that we are at a very crucial crossroads in this pair. If we do not find strength soon, I would have to think that perhaps we may just go sideways throughout the summer while waiting to see what happens next. Ultimately though, I am short of the Japanese yen against most currencies, this particular pair seems to be taking its time though.
