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The USD/JPY pair fell during the session on Wednesday, but bounced off of the 78 handle yet again. This area is the center of the larger consolidation area between 77.50 and 79. Because of this, we don't think that this pair is trade one of the moment, simply because we are in the middle of the larger consolidation area. In fact, we are more than willing to wait until we get up to the 79 level in order to start selling again, or wait until we see 77.50 tested in order to start buying.
With all this being said, we think this is a short-term traders market, and will approach it as such. Will keep our position small, and simply go back and forth with the market in order to try to make some type of small gain.