The USD/JPY pair had a fairly back and forth session on Tuesday in order to essentially go nowhere. The pair continues to hover around the 80 handle, and the level is one to watch without a doubt. The 80 level was where a massive breakout occurred a couple of months ago, and should be supportive. On top of that, the area is also home of the 200 day exponential moving average and the 50% Fibonacci retracement level. This area looks like it should hold if we are to ever get a continuation of the move higher. The Bank of Japan should continue to be very aggressive in the area below, so selling isn’t a thought at the moment. Buying on a break above 80.50 is our plan at the moment as it shows a momentum change.
Written by FX Empire