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USD/JPY had a fairly quiet session on Wednesday as the support area down to the 78 handle continues to hold the market up. This area seems to be rather strong, and as we know that the Bank of Japan has admitted to clandestinely intervening previously, we are more than happy to go long on a breakout of the 78.75 level.
We believe that the 78 level should be massive support, and is probably where the Bank of Japan is defending. A move below that would more than likely trigger some type of intervention, so we are more than willing to buy supportive candles below that level. As for selling, we simply will not do it.