The USD/JPY pair broke higher during the day on Monday, as the markets look ready to continue to climb to the 105 level. The breakout to the upside suggests that the US dollar will continue to strengthen, and we see that in several of the other markets at the same time. With that, we feel that the market should eventually break out above the 105 level, heading to the 110 level but recognize that’s a long-term call. A pullback at this point time should have plenty of buying pressure underneath it, and the gap that we formed for the Monday session of course is a very positive sign.
