The USD/JPY pair rose during the session on Wednesday, breaking the top of two shooting stars from earlier in the week, which of course is a very positive sign. It is because of this that we feel the next leg higher in this market is starting now, and as a result we continue to add to our already long position. In fact, we believe that this market is going to shoot straight to the 105 level, with a few pullbacks here and there. Pullbacks will continue to be buying opportunities as this market continues to strengthen over time.
Keep in mind that today is Thanksgiving, and as a result the Americans won’t be trading. This will cause massive liquidity issues during their normal trading hours, and as a result you may see almost no action during the North American normal business hours. However, this is more of a longer-term move in our opinion anyways, so quite frankly, we are completely comfortable going long at this point.
On top of all of that, the candle is very bullish for the Wednesday session, and we did close of the very top of the range. That tells us that there is still plenty of momentum to the upside, and even though the Americans will be pushing this market higher. Today, they will come back and buy it on Friday. In fact, we actually hope that the market drift a bit lower. In the meantime, simply because it should offer is plenty of buying opportunities with 101 being an obvious area of clustering. In that general vicinity, if we were to see some type of supportive candle, we would be more than willing to start buying again.
Regardless, we think this is the beginning of a multiyear trend, and as a result longer-term traders are certainly throwing their money behind this move as well. That always bodes well for a trend, and as a result we believe that simply “buying on the dips” going forward will be the best way to play this market for the longer-term.
Written by FX Empire