The USD/JPY pair initially fell during the course of the day on Tuesday, but found the area below the 106 level to offer quite a bit of support as it has been doing recently. With that being the case, a break above the top of the candle for the Tuesday session would be very bullish, as it would show that the buyers have finally stepped in and take in control. We get an FOMC Statement today, so that very well could be the catalyst for volatility. On the other hand, if we break down below the bottom of the hammer that would be very negative and send this market looking for the 105 level.
