The USD/JPY pair initially fell during the Wednesday session, but got a boost after the Federal Reserve minutes revealed that there were no serious discussions about quantitative easing. As this could be the case, it makes sense that this pair would rise as the Bank of Japan has been working against the Yen so aggressively. However, we see that the 80 handle continues to be resistive on the upside, and we continue to wait until we see a daily close above the 80.60 level in order to buy. On the downside, we simply won’t get involved because of the Bank of Japan and the possibility of intervention, or at least jawboning the value the Yen back down. However, if we get down to the 78 handle we would be willing to buy supportive candles down there.
Written by FX Empire