The USD/JPY pair did very little during the session on Tuesday as the market continues to hover about. The 120 handle of course is important when it comes to the longer-term attitude of this market, but given enough time we feel that this market will bounce so we are waiting to see whether or not we get a supportive candle or more importantly than that and impulsive candle that should send this market looking for the 123 level yet again. We believe that the longer-term interest-rate differential will continue to favor the US dollar, and that it’s only a matter of time before we break out to the upside. However, during this time year it’s hard to imagine much in the way of movement.
