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USD/JPY fell for most of the session on Monday, but bounced in order to form a hammer that is centered at the 78 handle. This area begins a massive consolidation area all the way up to the 79 handle. We think that the bank of Japan is clandestinely operating in this market again, and as such we are not willing to sell it. However, it looks like this move higher will be a grind more than anything else, it should be noted that it could be a very tricky position to hold onto. With this in mind, we are simply staying to the side except when taking on longer-term positions.