The USD/JPY pair has been volatile during the last 24 hours, as we continue to dance around the 110 level. I think looking at the longer-term charts, it’s likely that the buyers are coming in to pick up the US dollar “on the cheap”, as we are close to the bottom of a major consolidation area. This is a market that continues to be very choppy, due to the interest rate expectations in the Federal Reserve waxing and waning. I think that once we break above the highs of the day again, the market should continue to grind to the upside. Although I could see a scenario where we drop from here, for me that only offers value. It would only take a slightly hawkish statement coming out of the Federal Reserve to turn this market around almost immediately.
Written by FX Empire