The USD/JPY fell during the session on Tuesday, but bounced enough to in the positive for the session, forming a nice looking hammer just below the all-important 100 handle. With that being the case, it is obvious that the 100 handle has to be overcome for the buyers to take control this marketplace again, but this candle suggests to us that there is plenty of interest in doing just that. Because of this, we are avid buyers of this pair on a break and a close on the daily chart above that 100 level, as it would show that we could continue much higher. Alternately, we would buy pullbacks as they should provide buying opportunities.
Written by FX Empire