USD/JPY Forecast December 7, 2012, Technical Analysis

The USD/JPY pair did very little during the session on Thursday, as the markets were fairly quiet overall. We are at the top of a recent consolidation area, and as such it looks like we are trying to go higher. We have a bullish stance in this marketplace, but with the nonfarm payroll number coming out later today, we could see a lot of volatility in this pair specifically.

The USD/JPY pair has a long-running history of being very sensitive to us economic announcement, and as such we think that any pullback that would be a knee-jerk reaction should end up being a buying opportunity. After all, the Bank of Japan is sitting below and willing to get involved if the markets fall apart. As we like this pair a lot, we are hoping for some type of quick selloff in order to take advantage of. Otherwise, we are still buying supportive action in this market.