The USD/JPY pair fell for most of the session on Monday, but bounced later in the trading day to form a nice hammer. The pair looks like it is still willing to go higher, and this latest pullback may actually be a one-day event. The 0.8150 level now looks a bit supportive, and the pair also looks very constructive in general.
The 80 level is now our signal. If we can stay above that mark, we are willing to buy dips that show support, such as the Monday candle as we are going to add to our long position if we can break above the Monday highs.. Until we close on the daily timeframe below the 80 level, we are not willing to sell under any circumstance.
Written by FX Empire