The USD/JPY pair broke higher during the session on Tuesday, breaking above the 119 level. Ultimately, this market looks as if it is ready to go higher and as a result we are buyers. We believe that the pair probably goes to the 120 level next, and then perhaps the 121 level after that. Selling isn’t even a thought at this point, as the latest low was much higher than the one before it. We believe ultimately the interest-rate differential will step into play, and continue to push the US dollar higher than the Japanese yen over the longer term.
