The USD/JPY pair broke down during the day on Friday, slicing through the bottom of the hammer from Thursday. Because of this, the market looks as if it is going to try to reach down to the 100 level. However, somewhere in that area you would have to think that the Bank of Japan very well could get involved either verbally, or actual flat-out intervening. With this, I believe the quantitative easing is probably coming out of the Bank of Japan fairly soon as well, so I am a bit leery of selling this market but certainly wouldn’t be buying it at this point in time.
