The USD/JPY pair broke above the 105 level during the day on Tuesday, as we have a significant amount of resistance above. If we can break above the 105.50 level, that’s a very bullish sign and should start the market looking for the 107 level. Pullbacks at this point in time should have quite a bit of support below due to the gap, and because of that I think that we will eventually break out to the outside but will probably have to fight through quite a bit of noise above now.
