The USD/JPY pair fell during the session on Monday as the 88 handle proves to be far too resistive. However, we are still very bullish of this marketplace, and recognize the fact that a pullback is not only necessary, but healthy. With that being said, we still believe that the 85 level will offer quite a bit of support as it is where the gap shows on this chart, and a large round number which of course always attract traders. We believe the “floor” in this marketplace is at the 84 handle, and as such see this is a “buy only” type of pair right now. We would not short it at this point, but rather wait for supportive action in order to start buying again.
Written by FX Empire