The USD/JPY pair fell during the course of the day on Monday, but turned gray back around to bounce and form a bit of a hammer. The hammer of course suggests that we are going to go higher, but given enough time we will see quite a bit of resistance at the 114.50 level, and then the 115 level beyond there. If we break down below the bottom of the hammer, it’s likely that the market will try to drop down to the 112 level. At this point time though, the one thing that we are looking at is quite a bit of volatility.
