Yesterday all eyes were on the 114.50 level in the Yen, which as it turns out is a tough one to crack. Some talk by members of the BOJ helped spark the rally during Asian trade, but as the day wore on traders were a little hesitant to get involved around the highs.

Since that point, we’ve pulled back nicely and I think we can start having a look at a long entry. I’m bullish on the USD overall and I do think we will break the highs at some point. I’m just not prepared to bet on when that will be.

113.50 is the level that I’m looking to use to buy dips. I do think the USD is in for a small pullback after we failed to take out overhead resistance on the US Dollar Index. But a long entry at 113.50, with a target of 114.50 would be a nice trade.

USD/JPY – 240 min Chart.