The USDJPY pair broke higher during the course of the session on Monday, clearing the 123 handle.

With that being the case, we feel that the market will probably try to work its way back towards the 125 handle, so therefore we are buyers.

We have no interest whatsoever in selling at this point in time because we see so much in the way of support at the 122.50 level.

We recognize that there is a significant amount of resistance at the 125 handle, but sooner or later we should build up enough momentum to go higher.

Editor’s Note: Equity investors/traders can use the Currency Shares Japanese Yen Trust (FXY, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the Japanese Yen (USDJPY), minus ETF fee. The fund seeks to reflect the price of the Japanese yen (USDJPY) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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