The USD/JPY pair fell for much of the session on Friday, only to pop back up to form a hammer just above the 82 support level. The pair looks strong still, and we are long of it. Each one of these little pullbacks has produced a chance to buy, and we will look at this pair like that going forward as well. In fact, we are almost looking at a bullish flag at the moment that would have the 90 level being hit if completed on the break out.
With the Non-Farm Payroll coming out today, there is a real chance this pair moves in a strong manner. The pair generally will gain with good jobs numbers, and as the labor market in the United States has been improving, and the Bank of Japan is still buying massive amounts of bonds – we think the real risk is to the upside in this pair. A break of the highs from Thursday would also confirm this. Selling isn’t even a thought at the moment.
Written by FX Empire