The USD/JPY pair went back and forth during the session on Tuesday, hovering around the 100 handle. A lot of this lease predicated upon the fact that the Japanese prime minister speaks this morning, and as a result a lot of traders probably didn’t want to be too bothered taking on too much risk. The Prime Minister should be speaking about the so-called “third arrow” in the Japanese economic plans, and this of course will have a massive effect on what happens with both the Nikkei and the Yen. Because of this, we feel that the market to be relatively quiet in the very early hours, and react after he speaks. Quite frankly, we cannot think of a reason why he would choose to disappoint the market, and as a result we are still bullish of this pair.
Written by FX Empire