The USD/JPY pair fell during the session on Monday, but bounced in order to form a hammer. This hammer sits just below the 81.50 level, and can either be a supportive sign, or a “hanging man” if we managed to fall from here. Nonetheless, we do not accept the idea that a precipitous fall is coming, and because of this we are looking for supportive candles all the way down to the 80 handle. Says we get that, we will be buying this pair as the Bank of Japan will more than likely continue to press the issue on devaluing the Yen.
Written by FX Empire