The USD/JPY pair initially rallied during the session on Thursday, but as you can see it fell back down to form a shooting star. The shooting star is typically a very negative sign, but the reality is that we have plenty of supportive levels below in order to think that this market could selloff with any great amount of ease. We still think the Bank of Japan will work against the value of the yen, and the 100 level course is very psychologically significant. On top of that, it was the top of the ascending triangle that we have been working on for the last several months, and as a result should see support come in at what was once resistance. We are buyers on dips, but we must admit this candle does have us a bit underwhelmed.
Written by FX Empire