The USD/JPY pair broke down significantly during the session on Wednesday, slicing down to the 122.50 handle. However, the market looks as if there is support below, so we are simply going to step on the sidelines and wait for a buying opportunity somewhere near the 121 handle. We like this pair longer-term, but realize that this pullback has been a bit violent and we believe that simply waiting for some stability to go forward is probably the best way to go when trading this marketplace. We have noticed whatsoever in shorting USD/JPY.
