USD/JPY: Pullback presents buying opportunity
USD/JPY fell off a cliff on Monday and volatility spiked as investors hit panic button sending the pair as low as 90.81, before it bounced back to close at 92.34. At 92.11 at the time of writing, the jostling for position between the bulls and bears continues with the market repeating the dive and recover pattern. The pair is in a long-term bullish trend and the current pullback could be seen as good buying opportunity. We are likely to see further downside movement intraday but as long as the market remains above 90.00 there is no reason for the bulls to worry. On the upside, the 94.00 level has proved to be strong resistance area and it looks like we will need something special to break above it. The highlight of the day from a data standpoint is the US Consumer Confidence survey that is expected to increase in February.
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