Over the weekend the people of Japan held a snap election and it turns out that nothing changed. Ultimately markets liked this and on Monday the USD/JPY was really the big mover. It gapped higher and tested 114.00.

It couldn’t quite hold and has sold off back towards the previous resistance levels and in doing so has closed the ‘gap’.

I’m still bullish on the USD overall and certainly on the USD/JPY. I want to see a bullish candle around this current level. I’m watching 113.50 closely and we have tested it in the last few hours. If we can get a strong close above that level I would be happy to look at a buying opportunity.

USD/JPY – 240 min Chart.