The USD/JPY pair initially rose during the session on Friday but found significant resistance at the 84 level in order to form a shooting star. Even though the shooting star is ideally placed, we see the 82.50 level as significant enough support to think that any fall will simply be a pullback that offers a cheaper level to enter for the buyers. With the Japanese elections today, we think that a move above 84 will signal a long-term buy-and-hold type of situation as the LDP looks primed to take over power in Japan. If we get that move, we are not only buying this pair, but we are holding for quite some time.
Written by FX Empire