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The USD/JPY pair had another positive session as it has been alternating between gains and losses day after day. The 80 handle is still just above, and should provide resistance. However, we do see that the highs are getting slightly higher, and more importantly the lows are getting higher as well. This suggests that perhaps pressure is building for a breakout, but we do not see that as being a clear and concise sign in till we are above the 80.60 on the daily close.
This pair tends to be very sensitive to the nonfarm payroll number, and considering that it comes out this Friday it is very possible that this pair will do very little between now and then. However, if we get a good jobs report, it's very possible that this pair will finally break above the 80.60 level and produce a long-term buy-and-hold type of position. As for selling, we simply will not do it because of the Bank of Japan and the fact that it is working so hard against the value of the Yen below this area.