The USD/JPY pair managed to gain rather significantly during the shortened Monday session as word got out that the lawmakers in Washington DC may perhaps be coming close to a deal with the fiscal talks. As you can see, we have broken to a fresh new high, and this of course is a very bullish sign. There is still the gap to think about back at 85, and as such there is the possibility that we do see a little bit of a pullback in order to fill it as markets typically do, but all things being equal this is a very bullish market as far as we can see.
With this being said, we remain long of this pair, and would only buy it on dips as long as we can stay above 84. It isn’t until we break below the 84 handle that we even consider selling, and at that point in time it isn’t exactly one of our favorite ways to trade this pair.
Written by FX Empire