The USD/JPY pair fell during the session on Thursday, but bounced off of the 78 handle as we have suggested it would yesterday. This shows that there is quite a bit of support at 78 as we have formed a hammer for the session, and as such we are willing to start buying this pair again and a suggested move to the 79 handle. We think this is a short-term trade, but as long as the market is willing to give us 50 pips at a time, we are willing to take it.
Written by FX Empire