The USD/JPY pair initially fell during the course of the session on Tuesday, testing the 120 handle. With this being the case, we found enough buyers below to turn things back around and form a bit of a hammer. The hammer of course suggests that the market is going to go higher eventually, but we recognize that the moment we are essentially bouncing around between the 118.50 level on the bottom, and the 121 level on the top. Ultimately, we do think that this market breaks out but we are more interested in buying above the aforementioned 121 handle. We think pullbacks could offer short-term buying opportunities as well.