The USD/JPY pair went back and forth during the course of the day on Thursday, using the 108.50 level as support. That being the case, it looks like the market is simply going to try to build up enough pressure in this area to continue going higher. The sideways action of course is consolidation, and therefore it’s possible that the market should break out to the upside, but in the meantime we think that the market should be very quiet. If we break out to the upside, we will test the 110 level. We are buying pullbacks going forward as well, as the pair has obviously broken out above the 105 level.
