The USD/JPY pair fell on Thursday as the “risk off” trade continues to rock the markets. The Non-Farm Payroll numbers come out later today, and if the number is strong, this pair could see a nice bounce. The main premise is that there are a lot of traders out there that think the Fed is about to ease again because of the situation in Europe. The Bank of Japan has already cranked up the asset purchase program, and as a result they are in super-easing mode. However, as long as there is a threat of the Fed easing, this pair will struggle. If we get a strong employment number, this pair could rise rapidly as it would suggest that the Fed can’t ease anytime soon. The 80.60 level should be overcome in order for us to go long though, and we need to see a daily candle close above it. As for selling – the Bank of Japan is far too likely to intervene below for us to do this.