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The USD/JPY pair rose during the session on Tuesday as the 78 handle gave way. This suggests to us that we may see a move up to the 79 handle, but the length of the candle wasn't exactly expressing massive bullishness. In fact, we feel that more than likely this pair will grind its way back towards the top of this current consolidation area rather than move with any gusto.
The pair is essentially locked in a struggle between two central banks that are trying to print their way out of trouble. Because of this, we feel that the range bound attitude in this market will continue, and as result we are buying this pair closer to the 77.50 level, and selling it closer to the 79 handle.