The USD/JPY pair went back and forth during the session on Friday, but essentially ended up nowhere by the end of the day. There is a cluster of resistance above from the early part of July, and we think that will significantly slow the market down. However, we believe in the longer-term validity of the uptrend, and therefore have a positive bias in this market. Alternately though, we think the Federal Reserve and whether or not it chooses to taper in either September or October will be the reason this pair moves in one direction or the other. Because of that, we don’t expect much over the next couple of weeks.
Written by FX Empire