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USD/JPY rose during the past five sessions off of the 78 handle which has shown so much support. The Bank of Japan is working against the value of the Yen lately, and as such we think this move will eventually be the one that prevails. However, we do see quite a bit of noise between 78 and 79, and the most certainly a ton of resistance at the 80 handle.
Looking forward, we do think that eventually the upside when mainly because of the fact that this previous week as the only solid candle that was formed over the last month or so. While the range of the candle wasn't exactly astonishing, it is the first decisive candle either up or down over the last five trading weeks. Because of this, it has to be said that the momentum is definitely with the buyers. We are buying dips in this pair, but understand that we may be holding this long position for far longer than we anticipate.