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The USD/JPY pair had a strong week over the last five sessions, culminating in closing at the very top of the range. However, we know that the 80 handle is massively resistive, and as such we aren't as excited about this type of move is one would suspect. In fact, we see the 80.60 level as crucial to overcome in order to go long. If that does happen however, we think that the 84 handle will be calling.
The Bank of Japan is sitting underneath this pair, and as such we do not sell it under any circumstances. In fact, the lower this pair goes the more interested we are in buying. We truly believe that a bottom is being formed in this pair at the moment, but these tend to be very messy. Because of this, there will be several opportunities to get involved.