The USD/JPY pair fell initially on Friday, but as you can see reversed that move and formed a hammer. This hammer of course suggests that the market is going to go higher, but we also recognize the fact that the market just broke down the bottom of a wedge. Also, the Thursday candle was a shooting star, so in other words this pair looks to be an absolute mess at this moment. With that being the case, we are simply going to stay on the sidelines for a while until a little bit more decisive price action appears.
Written by FX Empire