The USD/JPY pair initially fell during the day on Monday, but turned back around to test the 125 level. Although we did not close above there, the market did close enough to make us believe that we will eventually break above the 125 handle. With this, we believe that it’s only a matter of time before the market breaks out and heads towards the 130 level, beginning the next leg higher. Because of this, we have no interest in selling this market and also look at pullbacks as potential buying opportunities. Ultimately, we believe that this pair will continue to be bearish over the longer term.
