The USD/JPY pair broke higher during the course of the day on Tuesday, but found the area near 120.50 to be far too resistive. If we get above there, we should then continue much higher. On the other hand, we could pull back and try to build up momentum. Pullbacks offer value in the US dollar, and with the FOMC Meeting Minutes coming out today, it’s likely that there will be some volatility in this marketplace. If there are signs of potential tightening or at least the tightening out of the Federal Reserve being on target, it’s very likely that the US dollar continues going higher.
