USD/JPY fell for the first part of the session on Tuesday, only to bounce hard and end the session slightly positive. In fact, the daily candle looks like a hammer, and even suggests that higher levels are to come. This wouldn’t be a massive surprise as the Dollar is being bought hand over fist right now because of the EU debt crisis. However, there is massive resistance at the 80 level, se we feel the upside is limited at this point. The Bank of Japan can’t break through this area, and that means something. We aren’t buying, but rather are interested in the idea of shorting this pair much closer to 80.
Written by FX Empire