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The USD/JPY pair fell during the session on Thursday as the "risk off" trade came back into play. This was predicated by the ECB and its lack of monetary policy after the meeting. However, this pair is still within the recent consolidative zone bordered by 78.00 and 78.50. With this being said, we think that any breakout to the upside should be bought as we could easily trade up to the 80 handle.
On the downside however, we see very little opportunity to get involved. The Bank of Japan is below, and willing to intervene if we get much lower than present areas. With this being said, this is a "buy only" pair for us, and we will only do so. Any daily close above the 78.60 level is reason enough for us to go long.