The USD/JPY pair fell initially during Friday, but got a bounce and closed above the 81 handle for the week. This pair has broken out recently, and now that we are well above the 80.60 level, we feel comfortable buying it and aiming for the 84 handle. The Bank of Japan is set to print “unlimited Yen”, and as a result we think this pair really could move to the upside. The one thing that could get in its way however, would be if the Americans choose to jump off of the fiscal cliff.
If that happens, ironically the US dollar would be the most sought-after currency in the world… Just behind the Japanese yen.
Written by FX Empire