The USD/JPY pair initially fell during the session on Monday, but as you can see found enough support below in order to go a bit higher. The 115 level below continues to be massively supportive, and we believe that ultimately this market will probably grind its way to the 120 handle. Pullbacks will continue to be buying opportunities as this market has moved into a “buy on the dips” type of mentality yet again. The market certainly can’t be sold, it is far too strong and even if we did break down below the 115 level, we feel that there is plenty of support at the 114 level, and the 112.50 handle.
