The USD/JPY pair fell during the session on Monday, dipping below the 98 handle. The shape of the candle is a bit like a hammer, and as a result it appears that people were willing to step in and buying this pair as it fell. Because of this, we still feel as this is a “buy on the dip” type of market going first. The pair has had a parabolic move higher lately, so it makes sense that the market pulled back. The market cannot go straight up, so this pullback will be bought on signs of support.
Written by FX Empire