The USD/JPY pair initially fell during the session on Monday, but found enough support at the 104 level in order to bounce and form a hammer. In the last three sessions, we have had a hammer, a shooting star, and now another hammer. This suggests to us that there is still plenty of support below, but ultimately this market is probably going to go sideways for the next couple of sessions. With tomorrow being Christmas, it makes perfect sense that this would happen. Ultimately though, we believe that this market goes higher over the longer term.
Written by FX Empire