The USD/JPY continued to grind away just under the all-important 80 level on Tuesday as traders try to challenge one of the most obvious points of resistance on any chart in the Forex markets presently. The move recently has been parabolic, and as a result there needs to at least be a consolidation area, if not a pullback. With this in mind, we are willing to take a small position at this point in order to capitalize on the overall trend resuming. (If it does.) The beauty of this trade is that it can be reversed if we close well above the 80 level for a longer term trade in this pair that could last months if not years.
Written by FX Empire