During the last quarter of 2013, the USDJPY bulls picked up where they left off and started pushing USDJPY into higher prices. Just recently a stubborn resistance level was breached as prices punched through and started trading above the 103.43 containment line. Since this market is in an obvious uptrend, we only want to be buyers here, but we also don’t want to pull the trigger too early.
In uptrends we buy on signs of weakness, in other words after market corrections. We are just waiting now for the market to finish a correctional move after it’s recent breakout and test the old resistance level which was recently breached. This level is now expected to hold as supper where we will be looking for a price action setup to give us a heads up on potential long positions.