Yesterday USDJPY moved up strongly above 106.00 to make a new five year high. The uptrend in the past four weeks was very strong, mainly supported by fundamental with good US economics data and partly due to weakness of Euro and the Pound.
It is clearly that US dollar bullish momentum is very strong and we expect the uptrend will continue in the medium and long term. However, with the bad Non farm payroll data last week and short term pull back of Euro and the Pound, the pressure of profit taking for US dollar at the 106.00 – 106.400 zone is high now, but may be a small pull back only. We can see it clear on the chart below.
Forex Trading Signals:
We will waiting for signals to long US dollar if it pull back down t0 105.00 – 105.300.
-105.00 – 105.300