The USD/JPY pair fell during the session on Monday, but as you can see bounced enough to form a hammer. This hammer suggests that the 101.50 level is offering enough support that the market could continue higher from this level. Also, you can see that there is an ascending triangle that the pair had recently broke out of, and as a result there is precedence for more and more buyers to get involved. We also believe that the 100 handle will be the “floor” in this market right now, and as a result do not think that the market will dip much farther than that. Pullbacks will be buying opportunities for the foreseeable future.
Written by FX Empire