The USD/JPY pair fell during the course of the day on Tuesday, testing the bottom of the hammer from the Monday session. We still have the 118.50 level below as support, so it’s not until we get below there on a daily close that we are willing to start selling. In the meantime, if we get some type of supportive candle in this area, we could get buying pressure going forward. A break above the hammer from the Tuesday session should be a signal the buyers are getting more aggressive, and it should send the market looking for the 123.50 handle over the longer term.
