The USD/JPY pair pulled back on Monday, but found enough support to pop back above the 103 level and form a nice-looking hammer. This hammer suggests that we are going higher, which is what we believe in the first place. With that being the case, we are more than willing to buy a break of the top of the hammer, but also recognize the fact that there could be a bit of choppiness above, and this will only be exacerbated by the fact that we are at the very end of the year, a time when traders typically step away from their desks.
Written by FX Empire