By FXEmpire.com
The USD/JPY pair bounced around during the previous week between the 79 and 80 handle This market is fairly tight, and therefore very difficult to trade with any long-term perspective at all. However, we see that there are a couple of levels were paying attention to in the meantime. The first one is the 78 handle as it is an area where the Bank of Japan tends to get involved. If we see some type of supportive candle in that range, we are very eager to buy at that point in time.
The other level that we are currently watching is the 80.60 level, which we see as a significant spot on the chart if he gets overtaken. This would signal a higher high, which of course is a very definition of an uptrend. If we get above that level we think that we could see a run back to the 84 handle. As for selling, we simply are not pointed in this pair because of the Bank of Japan efforts to devalue the Yen.
Click here to read USD/JPY Technical Analysis.
Originally posted here
