Usd/Jpy: Nothing Goes Straight Up or Down

The Usd/Jpy is pulling back pretty strongly this morning...don't know why but then again I don't usually ask why, just try to trade the chart patterns. The pair has been trending up for a while within a good channel, here's an hourly chart with a linear regression trend channel that shows the current uptrend.As you can see, the pair has been steadily trending for some time now. Does this break signify the beginning of a trend change? I don't know...my gut says no but I'm biased because I'm long the pair. Nothing goes straight up or down (or at least it is a rare occurence) and a good pullback is probably long overdue. I added a little to my position this morning and am sticking with the "buy the dip" plan until I'm proven wrong. I'll know I'm wrong when my stops are hit (still a couple of hundred pips away from that) or when my system registers a sell signal on the daily chart...sell signal will probably register if the pair closes below 96.70 level. Since neither of those conditions have occured, I'm adding.

Good luck out there.

TLT

Usd/Jpy Saw a Slight Pull-back but Still a Buy

The Usd/JPy has been rallying for a couple of weeks now and it seems to have reversed its strong downtrend. The pair did experience a slight pullback last night and this morning but, my trading system is still giving the pair a buy. Here's a chart with some explanations:
Hope you all have a good weekend.

TLT

Stopped Out of My Yen Trade

I have been short the USD/JPY pair and slowly trailing my stops for a couple of weeks now, but I got stopped out this morning when the pair had a parabolic rise. I have not checked the news or currency blogs yet to see what happend (or at least what everyone is claiming is the reason for the move) but the quick retracement smells of stop hunting. Here's a 5 minute chart that shows the rise:Although the rally was swift, it lacked follow through. This weakness combined with the fact that the pair is still in a major down trend on the daily time frame indicated to me that the move would most likely not last...so I faded it. So far the trade is working out well (up 55 pips as I'm writing this) and I'll be looking to add to the position if the pair continues to show weakness. Alternatively, I'll also be looking for signs that I'm wrong and that the pair is going higher...a very important thing to do when fading big moves. We'll see how it plays out.

Good luck out there.

TLT