The USD/JPY pair initially fell during the day on Thursday, but found enough support near the 103.50 level to bounce and form a nice-looking hammer. Because of this, we feel that the market certainly will have buyers involved, and that a break of the top of the hammer is in fact a signal to start going long and aiming for the 105 level. Even if we drop below there, we believe that the 103 level below will be massively supportive, so therefore we feel that this market is “buy only.” In fact, we have a longer-term target of 110.
