The USD/JPY pair initially fell during the course of the session on Thursday, but turned back around to form a little bit of a hammer. That being the case, the hammer sits just below the 120 handle, and as a result we need to get above there in order to start going long of this market. We think that once we get above the 121 handle, this market will then reach for the 122 level, which is the next step on the way to the 125 level. We think pullbacks will continue to find plenty of support all the way down to the 118.50 handle.
