The USD/JPY pair fell during most of the session on Thursday but found quite a bit of buying at the 78 handle. The candle that has formed that looks much like a hammer, which of course is following the shooting star. This suggests to us that the 78.25 level will continue to attract a lot of interest on both sides of the market, and as such we probably won’t go very far. With that in mind, we aren’t particularly overly excited to go long or short this pair as we are currently in the middle of the most prominent consolidating rectangle.
Written by FX Empire