The USD/JPY pair broke higher during the course of the day on Friday, continuing a very impulsive move. Because of this, we feel that the market is a bit overbought at this point in time, so we need to see some type of supportive candle below in order to start going long. The 105 level below is the “floor” in this marketplace, and as a result we are bullish but wanting to see some type of pullback in order to start going long. We think that the market will go to the 110 level given enough time, so therefore we have no interest in selling.
