While the USD is showing strength accross the board, the USD/JPY has really not changed technically speaking. The market is right up against a trendline right now which is offering resistance. Whether this resistance is enough to result in a reversal or not is open to debate. What is not is the fact that this type of a setup offers a low risk trading opportunity. There are many successful traders who use nothing more than trendlines in their analysis. Their edge is that they often find themselves in a trade with a great entry and low risk. Their win percentage may not be as high as those traders who enter on a breakout, but the profit potential is much greater since they find themselves already profitable on that breakout. These traders typically buy or sell at the trendline and only risk about 50 pips on the trade. Since they usually look for at least three times that risk in profit potential, one can see where the more experienced traders can be quite profitable using this approach.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.