The USD/JPY pair went back and forth during the course of the session on Tuesday, ultimately forming a fairly neutral candle. The neutral candle is only neutral because we are sitting on top of the 100 level which of course is so supportive. I believe that the Bank of Japan is very interested in this market, especially at this level. With this being the case we could get a bit of a bounce, but it’s going to be a short-term trading type of environment. If we do break down below the 100 level, I feel that it’s only a matter of time for the Bank of Japan does something to push back against the sellers.
