The USD/JPY pair fell initially on Thursday, but turned back around to form a somewhat supportive candle. However, we still see a significant amount of resistance at the 118.50 level above, so we are not ready to start buying quite yet. We believe the short-term sellers may step back into this market, and as a result short-term traders may be looking to sell. A break above the 119 level would have a longer-term effect on the buyers, perhaps sending the pair back towards the 123.50 level above. At this point in time, we think that there will be a lot of volatility regardless.
