The USD/JPY pair rose during the session on Friday, attempting to reach the 100 handle. We felt a short, but in reality what seems to be a given at this point time is that we will break above that level. This is especially true as the G 20 released a statement saying that they understood that the Japanese needed to devalue the Yen, and also seemed perfectly okay with it. If that’s the case, there’s absolutely nothing to stop the Japanese doing this aggressively now, and we believe that over the course of the next session or two we should see the 100 handle fall. On a daily close above that 100 handle, we are very bullish. Alternately, if we do pullback we like buying dips in this market as well.
Written by FX Empire