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The USD/JPY pair had an interesting week as we get well below the 78 handle on the quantitative easing announcement out of the Federal Reserve during the Thursday session. However, by the end of the day Friday we had a wicked turn around and formed a massive hammer on the 78 handle in this currency pair.
We suggested previously that the 78 level was could be very difficult to crack and that perhaps the Bank of Japan was getting involved. We haven't had any official word yet, but it does appear that something stepped into the market. Because of this, on a break of the top of the candle we think we are set to go to the 79.50 level. As for selling, we still won't do it.