The USD/JPY pair fell for most of the session on Friday, only to turn around and form a hammer in the end. The hammer is just below a massive resistance area though, so we don’t read too much into it. The breaking of the 80.50 level is what we need to see if we were to buy this market. The downside would be favored on a break below the bottom of the Friday hammer – albeit for a short-term trade as the Bank of Japan is going to be active sooner or later if this pair continues to fall.
Written by FX Empire