The USDJPY pair fell during the course of the day after initially gapping higher on Monday. With that being the case, the market seems like it’s trying to find support somewhere near the 104 level, which should send this market to the 105 level given enough time. Supportive candles will be the reason to buy, going long a market that has been very bullish lately anyway.

With that, we look at pullbacks as potential buying opportunities on supportive candles, and believe that also believe that the 105 level should be targeted, and if we can get above there we should eventually go to the 110 level.

Editor’s Note: Equity investors/traders can use the Currency Shares Japanese Yen Trust (FXY, quote) ETF to take positions in the yen without a FOREX account.  The ETF looks to track the price of the Japanese Yen (USDJPY), minus ETF fee. The fund seeks to reflect the price of the Japanese yen (USDJPY) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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