The USDJPY pair rose during the course of the session on Wednesday, breaking above the 1.3 .50 handle.

Because of this, we feel that the market is going to continue to go higher as it shows a natural desire to go towards the 125 level.

With this in mind, we are buyers on short-term dips, but recognize that it could be a fairly volatile move to that area.

We have no interest in shorting this market, as the US dollar looks to be fairly strong overall. On top of that, this is essentially a “risk on” type of move as this pair tends to move the stock markets in general.

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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