The USD/JPY fell during the session on Monday, but managed a bounce late in the session to form a hammer at the 77 handle. Because of this, it looks like it may want to bounce, and a break of the highs from Monday would trigger a buy signal as well. The Bank of Japan is willing to intervene, although probably not at this level. However, the move up here could be a nice trade if we get it. We would not short it at this level as we are getting towards the low area of the consolidation that keeps getting the BoJ to intervene.
Written by FX Empire