The Tuesday session saw strength in the USD/JPY pair as the Monday shooting star was overtaken by the bulls. However, the 77 handle is an area that saw significant support previously, and resistance would be somewhat expected. The area should continue to provide choppiness for traders, and make this pair very difficult to trade. Because of this, we are willing to step aside and wait for a pullback from which to buy this pair. The Bank of Japan is still below, and as such, we are willing to go long at lower levels, but recognize that the area just above could cause some issues.
Written by FX Empire