The USD/JPY pair broke higher during the course of the session on Thursday as we cleared the 120 handle. This was probably a bit of a “knock on effect” as the US dollar strengthened due to the ECB speaking of potential liquidity measures. Because of this, the US dollar of course strengthened everywhere. This is a market that has been consolidating for some time, so the fact that we broke above 120 should not have been a huge surprise. However, we think that the 121 level offers quite a bit of resistance. At this point, we are not willing to get involved.