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USD/JPY fell during the session on Wednesday, but bounced yet again in order to form a hammer within our well defined support zone. This hammer suggest that perhaps we will get a little bit of a lift at this point, and a break above the highs is yet another buy signal as far as we can tell.
Because of the Bank of Japan and its defense of the 78 handle, we are more than willing to go long of this pair but will not short it. We feel that eventually this pair will retest the 80 handle, and as such we think that there is a private to be made by going long.