USD/JPY hitting session highs

By: Ryan Littlestone

Been up to 93.91 so far looking to attack the 94 level again. I echo the previous post from Neils last night in that I feel the pair could be reaching a temporary top. The daily and weekly charts have it almost vertical which we all know won't last. When you have a strong trend like this along the way you need a good clear out now and again so that the trend can continue. The higher it goes without a correction the more severe a correction may be. Trading dips in the crosses has been very profitable for me in the last few weeks. Tech indicators aside I set my parameters to start buying after 150-200 pip retractions in GBP and EUR v JPY.  The last couple of years I've always traded USD/JPY from the long side. This strat is still in place but I'm getting increasingly twitchy over the current upward move. Buying dips is still the play but you may want to widen your parameters on when you start buying.  Don't rule out a corrective move of 300-400 pips in USD/JPY which of course will be magnified in the crosses.