USDJPY on resistance

With the recent move upward of the USDJPY, the pair closed trading last week on a resistance area on the daily chart inside the ichimoku cloud.

The days trading for August 20, 2012 saw the USDJPY pulling back to the 20 period exponential moving average on the 4 hour chart.

 The Hurst Exponent has indicated a 54% probability for persistence in the upward move.

Confirmations to go long or to keep long positions open would come from a clear break and close from the daily candle through the ichimoku cloud in the upward direction. For higher risk traders, a pull back to the moving averages on the 4 hour time frame would pose a meaningful entry point.

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