The USD/JPY pair had a fairly wild day on Wednesday as it initially broke above the 79 handle, only to be turned around and slammed back down to the 78.30 area. We still maintain that the Bank of Japan is paying attention to the 78 handle, and as such we are willing to buy on signs of support just below where we currently are. We will be looking for short-term trades, not massive long-term buy-and-hold once. We think that this pair should continue to be good for 50 to 60 pips at a time as we bounce around in this range.
Written by FX Empire