The USD/JPY pair initially tried to rally during the course of the session on Thursday, but struggled at the 105 level. The negative candle is of course a sign that we are not quite ready to break out to the upside yet, so having said that I think that we are going to bounce around in order to build up enough momentum to finally take the resistance above out and continue for more of a “buy-and-hold” type of situation. Pullbacks from here will continue to find support due to the fact that the Bank of Japan seems to be very interested in this pair at the moment.
