The USD/JPY pair fell slightly during the session on Monday in otherwise light trading. The stock markets were quiet, as were the futures markets. The pair has recently moved up quite strongly, so a pause isn’t too much out of the ordinary in a situation like this.
However, it should be noted that the session saw a bounce by the end of the session, and even formed a bit of a hammer. (A stubby one at that, but a hammer none the less.) The move for the session suggests that there are still a lot of traders that want in this pair to the upside. The next major resistance area we see is the 85 handle, and as such we are buying on dips until we get to that level. Selling isn’t a consideration until we get below the 80 handle.
Written by FX Empire