The USD/JPY pair managed to gain slightly during the Monday session, in otherwise tight trading ranges in financial markets around the world. With the poor jobs number last Friday, there was a lot of “risk off” trading at the end of last week. However, it appears that the market has settled down substantially and that many people are choosing to sidestep any trading at the moment.
We currently see an uptrend line that is being tested by the shooting star formed for the Monday session, and this does suggest that perhaps we will try to break down. If we do, we think that any supportive candles near the 78 handle should be bought as the Bank of Japan will certainly get involved one way or another down near that level. As for buying, we have been stating for some time that a break above 80.60 would be very bullish and have us long of this market. In the meantime, we feel that there are easier currency trades out there.
Written by FX Empire