The USD/JPY pair had a slightly bullish session for Tuesday, as we continue to bounce around in the 82.50 region. I currently see the 83 handle as the next resistance area that has to be overcome, and we could see that happened the day after the Federal Reserve has its question and answers session after the FMOC meeting. If the Federal Reserve plans on expanding its buyback program for the US Treasury Department, is very likely that we will see continued bullishness in all risk assets, and as such we could see this pair struggle to go higher. However, the Bank of Japan is on the other side of this equation and seems almost boxed in to a position where they have to start easing as well.
With all this being said, if we can get above the 84 handle this becomes a buy-and-hold type of situation. Until then, expect short-term choppiness with a slightly bullish bias overall. We also see a floor in this market somewhere near the 80 handle.
Written by FX Empire