By FXEmpire.com
The USD/JPY pair fell for much of the week, only to bounce off of the 78 handle which of course is a previous resistance and support level. This area was the region in which the Bank of Japan has clandestinely been involved in intervention previously, and it does warrant noting that the candle for the week formed a hammer just off of this specific level. We think this leads us to a rush back to the 80 handle, and as such we are more than comfortable going long on a break of the weekly candle we feel that the Bank of Japan is a bit of a backstop at this point, and are more than willing to take this trade.
Click here a current USD/JPY Chart.
Originally posted here
