The USD/JPY pair fell during the course of the session on Wednesday, but found enough support at the 119 level again to turn things back around and form a hammer for the second day in a row. Because of this, we believe that the market is going to continue to go higher given enough time, and that a break above the psychologically significant number of 120 is a reason to start buying yet again. The longer-term chart of course is in an uptrend, and we are currently testing what could be thought of as a bit of a positive trend line. Eventually, if we can get above the 120 level we feel that the 122 level will be tested as well. Above there, the market then heads to the 125 handle.

By Theodoros  Batsoulis
Technical Analyst
Risk Market
www.riskmarket.co.uk