The USD/JPY pair rose during the Monday session as the 61.8 Fibonacci level offered support. The 79 handle is also there, and this was probably part of the reason as well. The market had been sold off massively during a couple of sessions last week, and a bounce was needed.
The candle for the session on Monday formed a shooting star as the market pulled back a bit by the end of the session. The shape of the candle is somewhat concerning for the bulls, and the 200 day exponential moving average is still above. The Bank of Japan is still very interested in keeping the value of the Yen down though, so selling at this point is going to be difficult as intervention is a real possibility. Because of this, we are still waiting for a buy signal.
Written by FX Empire