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The USD/JPY pair had another bullish session on Friday as the market plowed into the 79.50 level. We have recently broken out above consolidation and it appears that the market is dead set on running to the 80 handle. However, if you are not long of this traded already, you are simply chasing at this point in time.
We see the 80 handle as a significant resistance barrier, and would need to see the 80.60 overcome in order to get decidedly bullish at this point in time. We think that a pullback is more than likely to happen, but this should provide a buying opportunity. We think the overall this market will rise over time, but when markets put in bottoms it typically gets pretty messy. Because of this, we think there will be plenty of opportunities to buy pullbacks.