The USD/JPY pair fell during the session on Tuesday as the bearishness in the marketplace overall continues. We still see this market as being stuck in consolidation and still recognize 79 as a bit of a “floor” at this moment in time. We see the top of the consolidation being the 80.50 level, and everything in between is fair game.
Looking at the candle from the session on Tuesday, it appears that we are still respecting the hammer from Friday. With that being said, a break above the highs from the last two sessions would have us buying, but only aiming for 80.40 or so. If we managed to break down below the 79 handle, we will simply wait for another supportive candle in order to buy this market. With the Bank of Japan offering support for this pair, we are not too excited about shorting it.
Written by FX Empire