The USD/JPY pair fell during the session on Friday, bouncing off of the 97.50 level in order to form a hammer that was pretty extensive. That shows us that the market wants to go higher, and could perhaps go above the 99 handle. This is more or less predicated upon the interpretation that the Federal Reserve may taper off of quantitative easing in December, which would catch the market completely by surprise. With that being the case, we think ultimately this market does go higher and could possibly end up being a buy-and-hold type of market.
Written by FX Empire