The USD/JPY pair initially fell during the session on Thursday as the majority of the markets looked to take profit in trades that have worked out well recently. However, we bounce quite a bit and formed a hammer by the end of the session which suggests that we still have the buying pressure going forward. The Bank of Japan is sent to work against the value the yen over the longer-term, and as a result we think this pair continues up to the 90 handle over the next few weeks or months. As for selling, we simply would not do it in this pair because we see 85 as not only be in a gap in the chart, but a significant support as well.
Written by FX Empire