The USD/JPY pair fell during the session on Tuesday, as the 100 handle appears to have acted as a psychological barrier. We fully expect to see 100 taken out to the upside, but the recent rise has been so parabolic it’s not surprising to see that there has been a bit of a pullback. With that being the case though, we would like to see more of a pullback and believe that the 95 level is the “floor” in this market right now, backed by the Bank of Japan. Going forward, we will buy supportive candles at lower prices, or a daily close well above the 100 handle.
Written by FX Empire