USD/JPY: The bulls remain undeterred
The US dollar enjoyed some good strength against the Japanese yen towards the end of the last week. The market pulled back in the beginning of the week breaking below 87.00, before the bulls took the upper hand to push the market above 89.00. With such a strong momentum it looks like there is only one direction for the market to move at the moment and this is upwards. If one also factors in that the Japanese Prime Minister pushes the BoJ to adopt a 2% target for inflation, the JPY is likely to lose further ground. At 89.39 at the time of writing, the next target for the bulls to watch sits at 90, which is expected to offer a bit of resistance. An upside penetration of that area would open the door for 90.4. So long as the market remains well supported by the rising trend line, any pullback could be seen as a good buying opportunity. Only a break below 89.05 could delay the bull run but this scenario is hard to imagine at the moment.
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