The USD/JPY pair continued to grind higher on Tuesday, as the Bank of Japan works its way against the Yen. The marketplace should continue to grind higher, but we have seen a significant move in a short amount of time, and as a result we may need to grind sideways for a while. However, we still maintain that the 84 handle is more than likely point to be our destination, and in fact believe that we could possibly even go over that level
We still see the 80 area as significant support, and as such aren’t as interested in selling as we are buying. Once we get below 80 and start threatening 77.50 or so, we think that the Bank of Japan will reenter the market and get involved as that area seems to be so massively supportive.
Written by FX Empire