The USD/JPY pair rose during the session on Monday as the pair continues to rise overall. We now are clear of the 84 handle, which was once serious resistance. We see the 85 handle as resistive as well, so we think that the move higher will be predicated upon a clearance of that level. If we can get above that, seen the 90 handle sometime in the next several months should be that big of a deal.
As for selling is concerned, we have no interest as the Bank of Japan is working against the value of the Yen so aggressively. Going forward, we think the Yen will be devalued against everything, and this pair has the added bonus of the US dollar being a “safety currency.” With that in mind, we are buying a breakout above the 85 handle.
Written by FX Empire