Upside breakout extends; FOMC ahead | 30 Octubre 2013

The USD/JPY pair moved up above the 45° trend-line and broke above it and moved higher. The short-term trend is definitely in doubt now since the pace and strength of the up-move is a sign the trend could be changing and turning bullish again, with a possible resumption of the medium-long term up-trend underway. A break above 98.30 would continue the trend higher and solidify the bullish trend-change, targeting 98.95. However, there is still the possibility the move up could be an A-B-C correction of the short-term down-trend and we may see a resumption of this down-trend now with a break below 98.00 leading to a move down to support at 97.45 where the 200-day MA is situated as the bear trend resumes. Today is FOMC with much volatility expected in dollar pairs.