The USD/JPY pair initially pulled back during the Friday session, but got a bit of a bounce as usual and formed a nice-looking hammer at the top of the massive green candles from Wednesday and Thursday. Because of this, it looks like this market is going to continue higher. That being said, we are a bit extended and do expect the 90 handle to offer a bit of resistance. If you are a little bit more aggressive, perhaps buying a break of the top of the Friday hammer and aiming for 90 is an acceptable position, and then of course waiting for the initial pullback to start buying again. This pair is without a doubt parabolic, but the momentum is so strong it’s hard to imagine the trend changing anytime soon. We like buying pullbacks when they come; the problem is they simply aren’t.
Written by FX Empire