The USD/JPY pair initially fell during the session on Monday, but found enough support in the area of the 104 handle that we saw a hammer form, suggesting of course of the market is going to continue to have positive pressure in it, thereby sending this market to challenge the 105 resistance area. We still believe that the key to much higher levels will be the one of 5.50 level, and a daily close above that would have us not only buying but adding to a long-term position. However, we still believe that a break of the hammer from the session on Monday is also a buy signal, just on a much shorter timeframe.
