The USD/JPY pair initially fell during the session on Monday, but as you can see bounced enough to form a bit of a hammer. This hammer is of the top of a longer-term uptrend over the course of the last several weeks, so it looks as if we are trying to build up enough momentum to break out to the upside. If we can get above the 122 handle, I believe at that point time the market then heads to the 125 level. It’s not a sure thing, but at this point time I believe that we are about to see a longer-term buy-and-hold type of situation. With that, I am already long of this market, but I’m looking to add small bits and pieces every time we pullback, as it will represent value in the US dollar.
I believe that the market continues to go much higher over the longer term, and that we will more than likely see the rest of the year being very good to this marketplace, as we should see much higher levels being attacked.
Buyers will return again and again.
Buyers were return to this market again and again over time, and as a result I have no interest whatsoever in selling this market. Quite frankly, the Bank of Japan continues to have absolutely no interest in tightening its monetary policy, and as a result it’s only a matter of time before we break out to the upside and continue a much steadier uptrend.
I think that there is a ton of support below, especially near the 120 level. Below there, I see quite a bit of support at the 118 level as well. Ultimately, the market has far too much in the way of support to even debate whether or not it should be sold. Anytime this market pulls back, I think that most of the trading community will look at it as potential value play, and with that, there will remain a significant amount of bullishness in this market regardless.
