The USD/JPY pair continued to grind sideways on Friday as the support area in 80 handle looks solid. The 200 exponential moving average is currently just below the price action, and this will bring in the trend traders. The 80 handle was a massive resistance area that was broken out of back in January, and it is now being retested.
A break above the 80.50 level would signal more strength, and we are more than happy to buy at that point as it would show not only the 80 handle, but the 50% Fibonacci as well held as support. We are not interested in selling at this point as long as the Bank of Japan is considered to be working against the value of the Yen.
Written by FX Empire