USD/JPY Forecast December 24, 2012, Technical Analysis

The USD/JPY pair fell during the Friday session, but bounced off of the 84 handle again and formed a hammer for the second day in a row. Looking at this chart, we can see that the 84 handle is certainly acting as support again, and it appears that we are going to go higher from this level. We would buy this pair (again) on a break of the highs from the Friday, Thursday, and Wednesday candles. Simply put, we think as long as the Bank of Japan is likely to continue to ease its monetary policy, this pair goes higher.

 

Written by FX Empire