The USD/JPY pair rose during the session on Tuesday, smashing through 102 level again. This market is supported by the Bank of Japan, and as a result we certainly wouldn’t short it. In fact, the ascending triangle that we broke out of suggests to us that we are going to the 105 level.
Ultimately, we expect to see 110, and could even see by the end of the year. Rising interest rates in the US Treasury markets could accelerate this move, although it is far too early to jump on that bandwagon quite yet. Nonetheless, rates did rise a bit during the Tuesday session, and this of course could play havoc with this market. We are willing to buy pullbacks.
Written by FX Empire