The USD/JPY pair rose during the session on Tuesday, breaking back above the 98 handle. This is psychologically significant, and as a result we are more than willing to buy this pair on a pullback that shows signs of support now. We still ultimately believe that this market will go much higher, and as long as the Bank of Japan is out there working against the value the Yen, it should naturally be bought every time it falls. If the Federal Reserve does in fact taper off of quantitative easing in either September or October, this pair will absolutely skyrocket.
Written by FX Empire