The USD/JPY pair broke down during the course of the session on Wednesday, testing the 116 handle. This is an area that offered a little bit of a bounce, but quite frankly we see more support down at the 115 handle, and therefore believe that it is probably going to be the real target. Given enough time, we of course should see bounces from time to time, but at this point it looks like they are going to be selling opportunities on signs of exhaustion. The hammer that form for the day is fairly strong, so it is possible that short-term buyers may try to push this market back to the 118 handle.
