The USD/JPY pair has had a solid run from just below 102 to just over 104 in the past week. The break above the early March highs is a good sign for yet further strength. The chart shows how price pushed through the 50dma (black line) on its way to these highs made this week.
Unless price falls back below that 50dma, we have to assume the trend remains up. So does a trader simply buy at this point? Not a great risk to reward scenario that one!
The best way to view this pair is to look for a pullback to a zone when buyers may come back into the market. There’s a cluster of support around the 103 price area which if price did pull back, could be where it halts. If this scenario were to play out, look for that support zone to stop the descent and price to start moving higher off it.
Most traders will have their own buy entry criteria, but for now, this pair remains bullish until proven otherwise.
Charlie Burton
EzeeTrader
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