The USD/JPY pair fell for the session on the day Thursday. The 80 handle below should continue to remain supportive, and we think that selling it is going to be hard to do until we get below it.
The Bank of Japan is currently trying to weaken the Yen via asset purchases, and we think that over time this could continue to push this market higher. The Federal Reserve will continue to weaken the Dollar as well, so this pair will now become a fight between two currencies that are being weakened.
However, the 80 level, the 50% Fibonacci level, and the 200 day EMA are all coming together just below. With this in mind, we aren’t selling and will look to buy supportive action at 80 in order to continue the next leg higher. If not, this pair will be a sell if we get a close below the 80 handle.
Written by FX Empire