Yesterday we saw some weakness come into the USD and one of the pairs that got hit was the USD/JPY. The Yen has been ripping higher and since the North Korean saga has cooled off, we have rallied from the 107 handle all the way up to 114.00.

As yet we haven’t been able to crack the 114 resistance level, however, I suspect it’s only a matter of time before we do. Pulling back to the 113.00 support level looks to me like a great buying opportunity.

If we get a test of 113 and a bullish candle, then I would be happy to buy the USD/JPY. Just remember that we have some BOJ policy coming out today and that might throw a spanner in the works, however, nothing is expected to change. Things rarely do with the BOJ it feels like.

USD/JPY – 240 min Chart.