The USD/JPY pair initially tried to rally during the day on Friday, but found the 100-exponential moving average too resistive to continue going higher. Because of this, I think we need to test the recent attempt at making a base, and with this am waiting to see a supportive candle blow to serve buying. Alternately, if we can break above the 112.50 level, the market could go much higher. Either way, I don’t have any interest in selling into we make a fresh, new low, and at that point I think that the market will probably go to the 110-handle underneath.
Written by FX Empire