The USD/JPY pair fell during the course of the day on Monday, but found enough support at the 107.50 level to turn things back around and form a nice-looking hammer. This was an area that we had broken out of recently, and the fact that the resistance has been smashed and now is starting to look like support is typical and classic technical analysis. Because of that we are willing to buy this market on a break of the top of the hammer, and recognize that the market should more than likely go to the 110 level.
