The USD/JPY pair initially fell on Wednesday but found enough support to turn things around and form a somewhat supportive looking candle. Because of this, I believe it is only a matter of time before we rallied again. I think the market will then reach towards the 112 level, then the 112.50 level after that. Pay attention to short-term pullbacks, it’s likely that the markets will continue to find buyers based upon value and of course interest rate differentials. I have no interest in shorting and believe that the 50% Fibonacci retracement level will continue to offer quite a bit of support at the 110 region.
Written by FX Empire