The USD/JPY pair fell significantly on Wednesday, as it was a bit of a “risk off” type of situation. I still see a significant amount of support underneath that the 108.50 level, so I believe that it is only a matter of time before the buyers return. We may be ready to consolidate between the 108.50 level, and the 110 level above. If we do break down below the 108.50 level, the market will more than likely go looking for the 105 level after that. If we could break above the top of the consolidation area, I believe that we then go to the 111 level. I suspect that we get a lot of back and forth trading until Janet Yellen speaks on Friday.
Written by FX Empire