The USD/JPY pair rallied during the day on Tuesday, breaking towards the 111 handle. I think that the market is going to try to reach the 112 level again but there is a lot of noise above. Japanese yen positions have softened recently, as we are starting to see bullish pressure in all the young related pairs. However, we still have quite a bit of resistance above, so I’m not ready to put serious money to work. I believe that short-term pullbacks could be buying opportunities but quite frankly shorting against the yen with currencies other than the US dollar might be the best way to go.
Written by FX Empire