USD/JPY: Outlook remains bullish despite market stopping for a breather
The bears dragged USD/JPY back below 89.00 on Tuesday after the Bank of Japan announced its plans for monetary easing. The “sell on the news” price action that continues this morning seems to be the market’s response to the recent one-way trade that we have recently seen. It makes sense for the pair to give back some gains but overall the outlook for the market remains bullish. At 88.21 at the time of writing the short-term trend remains to the downside as the market is in search of a support area. The Wednesday hammer from last week offers the first support level at 87.8. A further support level comes in at 86.6. Any price movement until that level could be seen as a good buying opportunity on a longer term basis. On the upside, a breakout above 90.00 could open the door for April 2010 highs at 95.00.
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