The USD/JPY pair had a strong showing on Wednesday as we gained 50 pips. While this doesn’t seem like a big move, in this highly manipulated market it truly is. With the Federal Reserve and the Bank of Japan both working against their own currencies, this pair has been a bit of a tug-of-war at these low levels.
We see the 79 handle as pretty significant resistance above, and of course the 77.50 level is pretty significant support. With this being said, we feel this is a range bound pair and will traded as such. Right now, we are right in the middle that range and therefore not interested in taking the position.
Written by FX Empire