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The USD/JPY pair fell during the week as the US dollar lost ground against many of the major currencies. However, we still see the 78 handle is been very supportive, and it should be noted that it would simply be a bounce back into consolidation if we got as high as the 80 level. Because of this, and the fact that the Bank of Japan has been very active in working against the yen once it gets below the 78 handle in this pair, we still prefer buying this pair on supportive candles.
Granted, it's going to be difficult to do on the weekly chart and that's why we will use the daily chart to enter this trade. Obviously, if we get a nice hammer on the weekly chart we wouldn't ignore it, but the odds are the buy signal will be on the daily timeframe. Again though, we think 80 is pretty resistive and are going to be quick to take profits at that level. If we do get above there, the 80.60 level opens up the door to the 84 handle if we can get through it.