The USD/JPY pair rose during the Tuesday session as the Dollar gained against almost all currencies. The pair has been sitting at the 80 handle for several sessions now, and it looks as if the level could cause a bounce. It would make sense if it happened as it was the site of a massive breakout at the start of the year for this pair, and it should offer support as a result.
The 200 day exponential moving average is just below as well, and this should bring in the trend traders as the area looks to be supportive. The 50% Fibonacci level is in the neighborhood as well, and if we get above the 80.50 level – we are ready to call it a “bounce” and go long. As for selling, we aren’t interested as a fall in this pair would certainly attract the attention of the Bank of Japan.
Written by FX Empire