The USD/JPY pair ended the day unchanged on Wednesday as the pair bumped along the 78 support zone. The 78 handle those represent significant support in this pair, so selling here certainly is not an option. Also, the Bank of Japan has been actively working against the value of the Yen lately, and of course this suggests to us that this is a one-way trade and should only be bought.
However, we do not see the supportive candle at this moment in time to warrant buying this pair. There was the hammer from the Monday session, but we have not broken above the top of that candles waned yet. If we were to do that at roughly the 78.60 level, we would buying this pair and aim for the 80 handle.
Written by FX Empire