The USD/JPY pair broke down during the session on Thursday, slicing through what little bit of support we had seen at the 109.50 level. I believe that it’s only a matter of time before the sellers return on short-term rallies, as it looks like the Japanese yen is being bought up again. If we did manage to break above the 110.25 handle, at that point I think the buyers would make a substantial stand. In the meantime, I think you can count on a significant amount of volatility and choppiness, but it certainly looks as if the sellers are in control. If that’s the case, I don’t think that we have much in the way of a buying opportunity until we get that massive move to the upside. Selling short-term rallies might be the way to go, but quite frankly I see a massive amount of support underneath as well. This is going to be a very dangerous market, as a turnaround could happen in the blink of an eye, or we could melt down. Quite frankly, just about anything is possible as we stand up on the precipice of major levels.
Written by FX Empire