USD/JPY Forecast February 10, 2014, Technical Analysis

The USD/JPY pair initially fell during the session on Friday as a poor jobs report came out of the United States. However, we found enough support near the 101.50 level to bounce and form a hammer. On top of that, the weekly candle is a hammer, so we think that both the short and long-term time frames are lining up to see bullish movement. On a break of the top of the hammer for the session on Friday candle, we see no reason that buying shouldn’t be done and we still expect to see this market reach the 105 level.