The USD/JPY pair did very little during the session on Friday as there was no real news to move the market in either direction. That being said, we still believe that the 105 level is the area that needs to be overcome in order to go long, and quite frankly would be more comfortable above 105.50 as it is the most recent high in this pair. Both central banks a relatively loose monetary policy wise, but the Federal Reserve is much closer to tightening monetary policy than the Bank of Japan. Because of this, we believe this market will ultimately go higher.
