If you trade long-term then USD/JPY provide the opportunity 3 weeks ago to take a bullish stance for a large upside move.
USD/JPY finally broke up through a massive head and shoulders bottom formation with a weekly close above a neckline at 83.50. This invalidated the possibility that action since early 2011 had been a triangle continuation. It coincides with the BOJ putting the money printing presses in high gear which never bodes well for a currency's value.
The minimum upside count from this formation is around 92.00. It looks due for a bit of a correction in coming weeks though with a key reversal on Friday signalling a probable short-term consolidation. A possible downside target is firstly 85.00 and at the outside 83.00 the original breakout point of the H&S. So best to wait for the consolidation to play out and wait for a breakout from that for a resumption of the bull trend.
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