The USD/JPY pair fell during the day on Thursday, as we tested the 123 handle. We did bounce a little bit towards the end of the session though, so having said that we feel it’s only matter of time before the buyers get involved. We are waiting to see supportive candles in order to start going long yet again, because quite frankly this pair should reach towards the 125 handle. The Federal Reserve is much more likely to raise interest rates in the near term them the Bank of Japan is, and as a result we favor the US dollar overall.
