The USD/JPY pair broke down to the upside during the course of the day on Friday, breaking above the top of the consolidation area that we have been stuck in for some time now. With the better than anticipated jobs number coming out on Friday, it makes sense that the US dollar continues to strengthen against the Japanese yen as the two correlate fairly well. Industry differential will continue to push this market higher. We are buyers of pullbacks as we believe it’s only a matter time for this market reach towards the 125 level again. Once we get above there, it becomes more or less a buy-and-hold situation.
