The USD/JPY pair broke down during the day on Monday, clearing the 107.50 level. This is an area that has caused quite a bit of resistance in the past so the fact that we broke above there is a very encouraging sign for the buyers. Given enough time, we should continue to go even higher, but I think short-term pullbacks are probably going to be needed in order to take advantage of perceived value. With this, I am “long only” and believe that the USD/JPY pair will eventually reach towards the 110 handle.
