The USD/JPY currency pair had a slightly negative session on Monday, but you can see that we bounce from the 82 handle yet again, to form a hammer. We have been very blunt about our opinion on this pair, and that we think it is going higher on balance.
With the Japanese elections coming up on the 16th, is very likely that we will see renewed pressure upon the Bank of Japan to continue to print Yen, and expand their already sizable asset purchase program. With this in mind, the Yen should continue to weaken against most currencies around the world, and this pair should absolutely take off if we can get above the 84 handle. As far as support is concerned, we see the 80 handle as massive in its implications, and do not think that this currency pair can get far below that level without the Bank of Japan intervening.
Written by FX Empire