The USD/JPY pair initially broke down during the course of the day on Wednesday, but we remain within the consolidation area that we have been stuck in for a couple of weeks now. Ultimately, the market should end up making up its mind soon, but we believe that the upside is more likely to be the direction in which it goes. After all, there are plenty of reasons to like the US dollar at the moment, and very few to like the Japanese yen. The Bank of Japan continues to work against the value of the Yen, and as a result we believe that this market heads to the 120 level given enough time.
