The USD/JPY pair went back and forth during the course of the day on Monday, hovering around the 121 handle. While the candle does look a bit negative, the reality is that there is a significant amount of support just below, so it’s hard to imagine that the pair is going to break down drastically from here. Because of this, we believe that eventually this pair will bounce but we obviously don’t have a supportive enough candle to start buying. We would of course go long if we can break above the 121.50 level, as it would show a pickup in upward momentum.
