I've been looking at the long-term chart of the USD/JPY pair today and it looks as if the long-term downward trend, which has been in place since the middle of 2007, could now be over. There are two reasons why I think this may be the case.
First of all if you look at the weekly chart below you can see that if you draw a long-term trendline plotting all the high points, the price has finally broken above this trend line, which could be highly significant.
Secondly you can also see that the Supertrend indicator has just turned green on this weekly chart as well which indicates that a new bullish trend is under way. This is the first time it has been green since October 2008.
Of course there is no guarantee that the USD/JPY will now start to head higher. It could easily head south again, but with the US economy starting to show real signs of improvement recently I wouldn't be surprised to see this pair creep up towards the 100 mark in the coming weeks and months.
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