The USD/JPY pair initially trying to rise during the session on Friday, but fell in the end to form a bit of a shooting star. However, we are sitting just above the 78 handle which of course is massively supportive in this market. We feel that the Bank of Japan is involved at this level, and as such we are not interested in selling at this point.
In fact, we are simply looking for supportive candles to buy in this market for very short term moves. Pay attention to the ten-year Treasury yields in the United States as they do tend the correlate very well with this pair. If there’s yields rise, this pair rises as well. Of course it works in opposite as yields fall so does this one, but truthfully yields don’t have much farther to go.
Written by FX Empire