The USDJPY has been on a tear since the outcome of the U.S. elections on November 9th. Before the final votes were counted, the pair hit a low of 101.18 before rocketing 445 pips to settle the day at 105.63.
Just as impressive is the rally that’s taken place since the November 9th close. In total, the pair has climbed nearly 1,000 pips in just eight sessions.
However, the USDJPY is quickly approaching a few levels of resistance via the April and May highs at 111.80 and 111.40 respectively. With that said, I’m only interested in buying opportunities here given the bullish momentum of late.
Any rotation back toward the 109.00 level next week could offer a chance to get long. This area is the former channel resistance (new support) and has already assisted with the rally efforts between November 16th and 17th.
Of course, there’s always the chance that such a pullback won’t materialize. In which case traders can watch for buying opportunities once the pair clears the 111.40/80 region.
Above that area, we have the February and March highs near 114.55. I’ll remain bullish so long as the pair trades above the 109 handle on a daily closing basis.
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