The USD/JPY pair did very little during the session on Monday, essentially falling back to the 1.05 level in order to prove it as being supportive. This area was a significant resistance level previously, so of course it’s not much of a surprise. In the end, we believe that this market continues much higher, and that any type of supportive action in this general vicinity is a buy signal.
However, the biggest problem that we have right now is the lack of liquidity in the marketplace. With the New Year’s Day holiday coming, this market is probably going to be very quiet, but we do believe in the long-term that this market will continue to go higher. Because of this, we are bullish of the USD/JPY.