The USD/JPY pair fell for most of the session on Tuesday as the 79 level has held and been proven to be supportive yet again. The pair is currently being propped up by the Bank of Japan, and this of course is known by most participants in the marketplace. Because of this, it’s very difficult to sell this currency pair, especially once we get a little bit lower and nearer to the 78 handle.
However, we haven’t got our buy signal yet and still wait for it. The hammer for the Tuesday session is a good sign, but it also was preceded by Monday’s shooting star. We still see the 80 level as significant in its importance, but the real hurdle is going to be found that the 80.60 level. If we can get a daily close above that mark, we are more than willing to go long and hold onto the position at that point. Until then, we don’t see much to do in this currency pair.
Written by FX Empire