The USD/JPY pair initially fell during the course of the session on Tuesday, but found support yet again and formed a nice-looking hammer. This hammer of course is a signal that we are going to continue to try to grind towards the 125 level. It’s not going to be easy, but we think eventually this market will try to break out to the upside. Once we get above the most recent high, we feel that we will reach towards 130 but that of course is a longer-term call. With this, we believe the pullbacks are also value that can be bought.
