The USD/JPY pair finally closed above the 77 level on Thursday, as traders are starting to shed the Yen. The US Treasury yields have been rising as of late and this pair is starting to show money flowing away from Japanese JGB’s into Treasury notes. The move is a bullish signal in this pair, but the trend is down. We asked for 77.50 to be reached for us to place small longs, and we feel this has been done. We are willing to go long finally, knowing that the Bank of Japan is willing to fight any massive sell off in this market. A break of the Thursday highs gets us long with a small position, knowing that the 80 level will more than likely not be broken in the near future.
Written by FX Empire