The USD/JPY pair rallied during the course of the day on Thursday, testing the 101.75 handle. There is a significant amount of noise just above though, so I feel sooner or later the sellers will probably return. I prefer to buy this pair on dips, so I’m not going to short as I believe that the Bank of Japan will continue to loom large in this market, especially the closer we get to the 100 handle. I think at this point in time, you’re looking at a lot of short-term opportunities at best.
