USD/JPY Forecast January 7, 2013, Technical Analysis

The USD/JPY pair had another strong session during the day on Friday, as the nonfarm payroll numbers of the United States came in right at consensus. The pair has been extraordinarily bullish lately, and although we still believe in the upside of this market, we have closed out our positions as it is just simply far too overextended this point in order to continue like this. We believe pullbacks will offer buying opportunities, and that we will eventually at the 90 handle. Having said that, there is a gap back at the 85 handle that needs to be filled, so a pullback could be somewhat severe. Nonetheless, we are not selling this pair and will be buying some supportive candle below current prices.

 

Written by FX Empire