The USD/JPY pair initially fell during the course of the day on Wednesday but found enough support near the 120 handle the turn things back around and form a relatively bullish looking candle. With this, we believe the market will reach towards the 121.50 level, and with the Bank of Japan releasing its Monetary Policy Statement later tonight, it’s likely that the Japanese will try to bring down the value of their own currency so therefore we are leaning towards the upside anyway. On a break above the 121.50 level, this market should then reach towards the 125 handle given enough time.
