The USD/JPY pair had a fairly strong showing on Tuesday, especially when you consider how big of a selloff we saw in the marketplace on Monday. This bounce makes sense, as the Bank of Japan will continue to work in weakening the Yen, and as a result we will eventually see the pair continue higher. Also, there is talk of the Federal Reserve possibly exiting the quantitative easing policies quicker than originally thought. If that’s the case, the simple interest-rate differential will be enough to push his market higher as well. We are buying this pair currently, and fully expect to see the 100 level tested yet again in the next couple of days.
Written by FX Empire