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The USD/JPY pair had a very quiet session on Wednesday as we essentially went nowhere by the end of the day. We currently hover around the 79.75 level, just under the all-important 80 handle. If the 80 handle gives way to the buyers, this market could begin to accelerate to the upside. After all, this area has been massive resistance over the months recently, and as such we think that would signify acceleration of buying.
However, we think this extends to a zone all the way up to 80.50 or so. Because of that, we would be a little cautious at first, but once we made new high we would be more willing to press the accelerator down in order to take advantage of what should be a relatively strong move. As for selling, if we see some type of bearish action in this general vicinity, we are more than willing to start selling as well as we think it would simply be a return to the consolidation area going all the way down to the 77.50.