The USD/JPY pair initially fell during the day on Tuesday, but bounced slightly form a bit of a hammer. Ultimately though, we are still very much in the previous consolidation area, so it’s a bit difficult to get excited about this move. We feel that the market will continue to go back and forth, so quite frankly we want to see some type of pullback in order to start buying on a “value play.” We think there is a massive amount of resistance above the 124 handle, extending all the way to the 125 level. This is why we prefer pullbacks.
