I’ve been talking all about the USD/JPY for the last week, as I have been really bullish. We’ve seen some strong upside movement overnight and we have finally taken out the 113.00 level.

The question now turns to what is next? In the most recent period, we haven’t been able to break above 113.00 and have tried and failed on numerous occasions. Long term I think we can push through this level. However how we react near the highs is most important of all.

The highs are actually near 113.50 so we are going to need to wait and see what the price action looks like. If we test and fail and put in a bearish candle there might be a retrace. However, I am fully expecting a test and break of 113.50 as I think the USD is strong.

Also if Abe wins re-election, then the JPY will likely fall away further. It’s been a great trade for followers of our forex signals, with hopefully more upside to come.

USD/JPY – 240 min Chart.