The USD/JPY pair initially tried to rally during the day on Wednesday, but turned back around as traders awaited the FOMC Statement. As we write this before that announcement, we look at this market as to regions. There is the area above the 122.50 level, which is very bullish. The area below is very negative, but we feel there is an absolute “floor” in this market at the 120 handle. If the market does fall from here, we are looking for supportive candles in order to start going long. On the other hand, if we break above the 123.50 level for any real length of time, we are buyers there as well. We have no interest in selling.
