The USD/JPY pair went back and forth during the day on Tuesday, as we broke above the 109 level. However, there’s a lot of noise between here and the 110 level, so it’s likely that we could turn right back around. A break down below the bottom of the range for the session on Tuesday is reason enough for us to sell the short-term basis, assuming that the market is going to reach back towards the 108 level. If we did break above the 110 level, we could be buyers then, but not until then.
