USD/JPY had a slightly bullish session for Thursday although it did end up giving back quite a bit of the gains by the end of the session in order to form a less than impressive green candle. The 78.75 level continues to be resistance in this pair, and as such we need to get above that on a daily close in order to get long of this market.
The Bank of Japan is below as we have been saying, and 78 looks like it’s their “line in the sand” as far as how low they will let this market get. If the market does fall below the 78 handle, we are more than willing to buy supportive candles as we see nothing but central bank intervention on the way down the 76. If we can get our buy signal however, we think that this market should run to the 80 handle without too many issues.
Written by FX Empire