The USD/JPY pair fell during the session on Monday, but as you can see bounced enough to form a hammer. This hammer of course suggests that we are going to go higher, but at this moment in time we do not have the signal to start buying yet. We need to get above the 99.50 level in order to break the range of the candle from Thursday, when we got the surprise ECB rate cut. If that happens, we are buyers of this pair. As far as selling is concerned, we look at pullbacks as potential buying opportunities.
Written by FX Empire