The USD/JPY pair broke higher during the course of the session on Monday, using the 120 level as support. That supportive area of course has been rather strong from time to time as both resistance and support, so we feel that this market will in fact continue to go higher now. With that being the case, we are very bullish of the US dollar against the Japanese yen nonetheless, simply because of the way that the central banks are aligned. Ultimately, we believe that the market should continue towards the 122 handle.
