The last week or so has really seen a big change in momentum in the USD/JPY. Not that long ago we were incredibly bullish and taking out the highs of 114.50. As it stands now, things are very different.

The USD has fallen away thanks to a dovish outlook from the FOMC. While the JPY has been gaining some steam against most other currencies across the board.

With that in mind, I think the best play now is to ride that momentum and look for pullbacks. I will be targeting the 111.50 level for a place to look for a short. If we break much higher then we will likely pullback into the range. I would like to see a bearish candle that looks like there are sellers.

Otherwise, a break below 111.00 and a pullback, would be another solid plan.

USD/JPY – 240 min Chart.