The USD/JPY pair spent most of the session on Thursday falling, but found enough support near the 102 level to bounce. However, the candle is in exactly overly supportive looking, so I feel that the market will continue to struggle in the short term. However, the most important on this chart as the 101.50 region, which of course has been very supportive over the last several months. I feel that the market will continue to bounce off of that area, and as a result I believe that buying supportive candles near that region is a as close to a “no-brainer” trade as you will find in this market.
However, when you look at this chart I believe that there is probably enough noise between here and there that we could in fact see some type of supportive candle. That supportive candle should be reason enough to start buying, and I believe that the market will then had to the 103 level initially, and then aiming for the 104 level. Above 104, we should see the 105 level be attacked. I believe that the 105 level is in fact a major significant resistance area, and I also believe that will eventually get broken.
Continued bullishness.
I believe that ultimately this pair will have a continued bullish tone to it, and as a result you can only buy. That being the case, I see no reason whatsoever to short this market and really can’t do so in good conscience until we get below the 100 level. I don’t see that happening anytime soon, so truthfully this is a “buy only” market for me.
Anytime that we see pullbacks in the future, I feel that this market will be offering value. That value should be taken advantage of, as you should start buying. I know that the 105 level will be resistive, but quite frankly I feel that by the end of the year we should be at the 110 level. With that, I believe that the Bank of Japan and its quantitative easing policies will continue to push this pair higher given enough time.
