The USD/JPY pair fell initially during the session on Thursday, but found enough support near the 101.50 region to bounce and form a hammer. This hammer suggests that we are going to bounce from here, and probably head back towards the 102.40 region. This market looks like it’s ready to continue consolidating, with a slightly upward bias. We would buy on a break of the top of the hammer, but we would not be expecting too much in the way of fireworks. That being the case, we are bullish, but not overly excited about it.
