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The USD/JPY pair rose again during the session on Wednesday as the market approaches the 79 handle. It is at this level that we certainly run into serious resistance, so quite frankly we are looking for sell signals.
Looking forward, we think eventually this market goes higher, but there is nothing right now that suggests that it should. We need to get above the 80 handle in order to be significantly bullish of this pair, and as such think that we are simply looking to bounce around between 79.50 and 77.50 or so. It isn't until we break out is level that we look at anything more than a ultra short-term trade. If we get some type of resistant candle just above, we are more than willing to start selling as we figure it's probably going to be good for about 100 pips.