To learn more click here
USD/JPY rose rather rapidly during the session on Tuesday as the "risk on" environment predicated the growth of the risk year pair such as this one. We still see the 79.50 level is a serious barrier however, and as such we are not overly enthusiastic about going long this pair in the short-term. In fact, we need to see 80 level give way in order to get overly bullish.
If we find some type of resistant candle in the next 50 pips or so, we think that this market will continue to consolidate. This would of course have us selling, as we suspect this range will hold. However, if we do break the 80 handle, we would be more than willing to go long on a longer-term basis. With the Bank of Japan underfoot, we dare not short this pair for anything longer than a very short term trade.